UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

ý   Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended             June 30, 2005           or

 

o   Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from              to

 

Commission file number          1-12289

 

SEACOR Holdings Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

13-3542736

(State or Other Jurisdiction of
Incorporation or Organization)

 

(IRS Employer
Identification No.)

 

 

 

11200 Richmond, Suite 400, Houston, Texas

 

77082

(Address of Principal Executive Offices)

 

(Zip Code)

 

(281) 899-4800

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý   No o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes ý   No o

 

The total number of shares of common stock, par value $.01 per share, outstanding as of August 3, 2005 was 24,813,766. The Registrant has no other class of common stock outstanding.

 

 



 

SEACOR HOLDINGS INC.

 

Table of Contents

 

Part I.

Financial Information

 

 

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of
June 30, 2005 and December 31, 2004

1

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for each of the
Three and Six Months Ended June 30, 2005 and 2004

2

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 2005 and 2004

3

 

 

 

 

 

 

Notes to the Condensed Consolidated Financial Statements

4

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

9

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

18

 

 

 

 

 

Item 4.

Controls and Procedures

18

 

 

 

 

Part II.

Other Information

 

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

19

 

 

 

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

19

 

 

 

 

 

Item 6.

Exhibits

20

 



 

PART I – FINANCIAL INFORMATION

 

ITEM 1.                  FINANCIAL STATEMENTS

 

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data, unaudited)

 

 

 

June 30,
2005

 

December 31,
2004

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

377,189

 

$

214,389

 

Available-for-sale securities

 

58,088

 

136,992

 

Trade and other receivables, net of allowance for doubtful accounts of $4,071 and $3,357, respectively

 

200,476

 

193,050

 

Inventories

 

19,871

 

18,837

 

Prepaid expenses and other current assets

 

9,215

 

35,453

 

Total current assets

 

664,839

 

598,721

 

Investments, at Equity, and Receivables from 50% or Less Owned Companies

 

49,603

 

47,870

 

Property and Equipment

 

1,227,113

 

1,236,261

 

Less accumulated depreciation

 

(292,900

)

(310,674

)

Net property and equipment

 

934,213

 

925,587

 

Construction Reserve Funds

 

98,140

 

144,006

 

Other Assets

 

52,172

 

49,825

 

 

 

$

1,798,967

 

$

1,766,009

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

41

 

$

13,228

 

Accounts payable and accrued expenses

 

43,335

 

63,461

 

Other current liabilities

 

81,738

 

65,797

 

Total current liabilities

 

125,114

 

142,486

 

Long-Term Debt

 

597,467

 

582,367

 

Deferred Income Taxes

 

213,378

 

211,542

 

Deferred Income and Other Liabilities

 

24,497

 

28,988

 

Minority Interest in Subsidiaries

 

7,257

 

6,869

 

Stockholders’ Equity:

 

 

 

 

 

Common stock, $.01 par value, 24,779,588 and 24,545,428 shares issued at June 30, 2005 and December 31, 2004

 

248

 

245

 

Additional paid-in capital

 

421,788

 

412,210

 

Retained earnings

 

594,988

 

551,273

 

Treasury stock, 6,313,235 and 6,237,932 shares at June 30, 2005 and December 31, 2004, at cost

 

(203,065

)

(197,850

)

Unamortized restricted stock compensation

 

(4,874

)

(2,423

)

Accumulated other comprehensive income -

 

 

 

 

 

Cumulative translation adjustments

 

13,046

 

18,296

 

Unrealized gain on available-for-sale securities

 

9,123

 

12,006

 

Total stockholders’ equity

 

831,254

 

793,757

 

 

 

$

1,798,967

 

$

1,766,009

 

 

The accompanying notes are an integral part of these financial statements
and should be read in conjunction herewith.

 

1



 

SEACOR HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data, unaudited)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

$

177,831

 

$

97,403

 

$

343,016

 

$

193,377

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

117,179

 

73,759

 

232,780

 

148,789

 

Administrative and general

 

19,329

 

13,857

 

37,824

 

28,933

 

Depreciation and amortization

 

18,492

 

14,156

 

36,774

 

28,117

 

 

 

155,000

 

101,772

 

307,378

 

205,839

 

 

 

 

 

 

 

 

 

 

 

Gains on Asset Sales

 

1,812

 

6,117

 

15,328

 

9,755

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

24,643

 

1,748

 

50,966

 

(2,707

)

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

Interest income

 

4,484

 

1,663

 

8,163

 

3,042

 

Interest expense

 

(7,550

)

(5,388

)

(15,141

)

(10,766

)

Derivative loss, net

 

(178

)

(560

)

(1,768

)

(481

)

Foreign currency transaction gains (losses), net

 

4,401

 

(689

)

3,852

 

(223

)

Marketable securities sale gains, net

 

8,502

 

2,753

 

14,736

 

5,502

 

Other, net

 

440

 

233

 

640

 

352

 

 

 

10,099

 

(1,988

)

10,482

 

(2,574

)

Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit), Minority Interest in Income of Subsidiaries and Equity In Earnings of 50% or Less Owned Companies

 

34,742

 

(240

)

61,448

 

(5,281

)

Income Tax Expense (Benefit)

 

12,448

 

169

 

22,188

 

(1,333

)

Income (Loss) from Continuing Operations Before Minority Interest in Income of Subsidiaries and Equity in Earnings of 50% or Less Owned Companies

 

22,294

 

(409

)

39,260

 

(3,948

)

Minority Interest in Income of Subsidiaries

 

(154

)

(91

)

(120

)

(86

)

Equity in Earnings of 50% or Less Owned Companies

 

2,594

 

673

 

4,211

 

1,243

 

Income (Loss) from Continuing Operations

 

24,734

 

173

 

43,351

 

(2,791

)

Income from Discontinued Operations, net of $210 and $196, respectively, in income tax expense

 

390

 

 

364

 

 

Net Income (Loss)

 

$

25,124

 

$

173

 

$

43,715

 

$

(2,791

)

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

$

1.35

 

$

0.01

 

$

2.37

 

$

(0.15

)

Income from Discontinued Operations

 

0.02

 

 

0.02

 

 

Net Income (Loss)

 

$

1.37

 

$

0.01

 

$

2.39

 

$

(0.15

)

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

$

1.18

 

$

0.01

 

$

2.09

 

$

(0.15

)

Income from Discontinued Operations

 

0.02

 

 

0.02

 

 

Net Income (Loss)

 

$

1.20

 

$

0.01

 

$

2.11

 

$

(0.15

)

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

18,349

 

18,347

 

18,299

 

18,407

 

Diluted

 

21,924

 

18,476

 

21,916

 

18,407

 

 

The accompanying notes are an integral part of these financial statements
and should be read in conjunction herewith.

 

2



 

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

 

 

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net Cash Provided by Operating Activities

 

$

49,076

 

$

268

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Purchase of property and equipment

 

(144,960

)

(69,527

)

Proceeds from asset sales, including those previously held for sale

 

112,287

 

60,859

 

Purchase of available-for-sale securities

 

(81,753

)

(69,834

)

Proceeds from sale of available-for-sale securities

 

178,130

 

50,891

 

Investments in and advances to 50% or less owned companies

 

(252

)

(359

)

Principal payments on notes due from 50% or less owned companies

 

62

 

2,830

 

Proceeds on sale of investments in 50% or less owned companies

 

 

5,148

 

Dividends received from 50% or less owned companies

 

2,956

 

991

 

Net (increase) decrease in construction reserve funds

 

45,866

 

(24,312

)

Investment in note due from non-affiliate

 

 

(5,352

)

Principal payments on note due from non-affiliate

 

 

41

 

Cash settlements of derivative transactions

 

(110

)

(274

)

Acquisitions, purchase price adjustments

 

4,793

 

 

Net cash provided by (used in) investing activities

 

117,019

 

(48,898

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Payments of long-term debt

 

(13,207

)

(65

)

Proceeds from borrowings under a revolving credit facility

 

15,000

 

10,000

 

Proceeds from share award plans

 

2,625

 

448

 

Common stock acquired for treasury

 

(5,561

)

(12,814

)

Other

 

158

 

(64

)

Net cash used in financing activities

 

(985

)

(2,495

)

 

 

 

 

 

 

Effect of Exchange Rate Changes on Cash and Cash Equivalents

 

(2,310

)

847

 

 

 

 

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

 

162,800

 

(50,278

)

Cash and Cash Equivalents, Beginning of Period

 

214,389

 

263,135

 

Cash and Cash Equivalents, End of Period

 

$

377,189

 

$

212,857

 

 

The accompanying notes are an integral part of these financial statements
and should be read in conjunction herewith.

 

3



 

SEACOR HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

1.             Basis of Presentation

 

The condensed consolidated financial information for the three and six months ended June 30, 2005 and 2004 has been prepared by the Company and was not audited by its independent registered public accounting firm. The condensed consolidated financial statements include the accounts of SEACOR Holdings Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to present fairly the Company’s financial position as of June 30, 2005 and its results of operations and cash flows for the three and six months ended June 30, 2005 and 2004. Results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year or any future periods.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004.

 

Unless the context otherwise indicates, any references in this Quarterly Report on Form 10-Q to the “Company” refer to SEACOR Holdings Inc. and its consolidated subsidiaries, and any references in this Quarterly Report on Form 10-Q to “SEACOR” refer to SEACOR Holdings Inc.

 

2.             Seabulk Merger

 

On July 1, 2005, SEACOR completed its merger with Seabulk International, Inc. (“Seabulk”). With a fleet of 144 vessels at acquisition, Seabulk is a leading provider of marine support and transportation services, primarily to the energy and chemical industries. Seabulk’s offshore energy services fleet supports operators of offshore oil and gas exploration, development and production facilities in the Gulf of Mexico, the Arabian Gulf, offshore West Africa, South America and Southeast Asia. Seabulk’s tanker fleet, principally comprised of U.S. flag ships, transports petroleum products, crude oil and chemicals. Seabulk’s marine towing fleet provides harbor towing services from ports in Florida, Alabama, Louisiana and Texas and offshore towing services primarily in the Gulf of Mexico.

 

Under the terms of the merger agreement, Seabulk’s stockholders received 0.2694 shares of SEACOR common stock, par value $0.01 per share (“Common Stock”), plus cash of $4.00 for each issued and outstanding share of Seabulk common stock. Based on SEACOR’s closing price of $64.30 on June 30, 2005, Seabulk stockholders have received $21.32 in SEACOR stock and cash for each share of Seabulk common stock exchanged. Seabulk stock ceased trading at the close of business on June 30, 2005.

 

The aggregate equity value of the transaction was approximately $521.7 million, based on SEACOR issuing 6,354,642 shares of Common Stock, 394,446 options to purchase Common Stock, plus additional cash consideration of approximately $94.4 million. The cash portion of the transaction was financed with $50.0 million of additional borrowings under SEACOR’s existing revolving credit facility and internally generated funds.

 

3.             Equipment Acquisitions and Dispositions

 

Capital expenditures aggregated $145.0 million in the six months ended June 30, 2005. Equipment deliveries during the period included 4 used anchor handling towing supply vessels and 1 new crew vessel, 45 new dry cargo covered hopper and 16 new chemical tank barges. The Company also sold 11 offshore support vessels, 4 helicopters and other equipment for aggregate consideration of $108.6 million in the six months ended June 30, 2005.

 

4



 

4.           Acquisition of Era Aviation, Inc. and Disposition of Held for Sale Assets

 

On December 31, 2004, the Company acquired all of the issued and outstanding shares of Era Aviation, Inc. (“Era”), the owner of 81 helicopters and 16 fixed wing aircraft. Immediately following the acquisition of Era, the Company combined Era’s helicopter business with its pre-existing helicopter services and began a process to sell Era’s regional airline service business that included its fixed wing aircraft. During the six months ended June 30, 2005, the purchase price of $118.1 million was reduced by $4.8 million resulting from the final determination of acquired working capital partially offset by additional closing costs. The purchase price allocation will be completed in 2005. The Company does not expect the acquisition of Era to result in the recognition of goodwill.

 

Effective May 27, 2005, the Company sold Era’s regional airline service business, previously “held for sale,” for $15.0 million. Sale proceeds, paid to the Company in July 2005, were reported in “Trade and other receivables” in the Company’s Condensed Consolidated Balance Sheet at June 30, 2005. The operating results of the regional airline service business, including $15.3 million of operating revenues earned in the six months ended June 30, 2005, have been reported as “Discontinued Operations” in the Company’s Condensed Consolidated Statement of Operations. The Company also sold other previously “held for sale” Era assets for $3.7 million, including 1 helicopter and 4 fixed wing aircraft, during the second quarter of 2005.

 

5.             Construction Reserve Funds

 

During the second quarter of 2005, the Company withdrew $50.9 million from its joint depository construction reserve fund accounts with consent of the Maritime Administration. The withdrawals reimbursed the Company for prior purchases of dry cargo hopper and chemical tank barges and an anchor handling towing supply vessel. These withdrawals were partly offset by the Company’s deposit into its joint depository construction reserve fund accounts of additional offshore support vessel sale proceeds and interest earned on invested fund balances during the six months ended June 30, 2005.

 

Construction reserve fund accounts were established by the Company pursuant to Section 511 of the Merchant Marine Act, 1936, as amended. In accordance with the statute, the Company has been permitted to deposit proceeds from the sale of certain vessels into the joint depository construction reserve fund accounts for the purpose of acquiring U.S. flag vessels and qualifying for the temporary deferral of taxable gains realized from the sale of vessels.

 

6.             Commitments and Contingencies

 

The Company’s unfunded capital commitments as of June 30, 2005 for new helicopters, new dry cargo covered hopper barges, new offshore support vessels and other equipment totaled $342.7 million. Of these commitments, up to approximately $160.0 million may be terminated without liability other than the payment of liquidated damages of $3.0 million in the aggregate. Deliveries are expected in 2005 through 2009 for helicopters, 2006 through 2007 for barges and 2005 for offshore support vessels. In addition to these purchase commitments, the Company has placed refundable deposits for additional new helicopters.

 

The Company has guaranteed the payment of amounts owed by certain of its joint ventures under vessel charter agreements that expire through 2009. In addition, the Company has guaranteed amounts owed by certain of its joint ventures under a banking facility and a performance guarantee. As of June 30, 2005, the total amount guaranteed by the Company was $14.8 million.

 

A subsidiary of SEACOR has received a document subpoena from the Antitrust Division of the U.S. Department of Justice. This subpoena relates to a grand jury investigation of potential antitrust violations among providers of helicopter transportation services in the Gulf of Mexico. The Company believes that this subpoena is part of a broader industry inquiry and that the other providers also have received such subpoenae. SEACOR intends to provide all information requested in the response to this investigation.

 

7.             Long-Term Debt

 

In 2005, the Company borrowed $65.0 million ($15.0 million on June 3, 2005 and $50.0 million on July 5, 2005) under its revolving credit facility and, as of August 3, 2005, $132.8 million remains available for future borrowings under that facility. The Company’s revolving credit facility terminates in February 2007. Repayments of long-term debt in 2005, principally related to an obligation due an offshore vessel builder, totaled $13.2 million.

 

5



 

8.           Income Taxes

 

As a result of the American Jobs Creation Act of 2004, the Company believes it will be in the position to repatriate, for a limited time, accumulated foreign earnings at an effective federal tax rate of 5.25%, which would result in tax obligations significantly less than the deferred taxes previously provided for its unremitted earnings of foreign subsidiaries. The Company is exploring the full impact of the legislation and will finalize its repatriation plan during 2005. In accordance with FASB Staff Position FAS 109-2, the Company will recognize the income tax benefit of this special one-time dividends received deduction in the period that the Company has decided on a plan for repatriation.

 

9.             Authorized Shares of Common Stock

 

At the annual meeting of stockholders on June 27, 2005, the holders of Common Stock approved an amendment to SEACOR’s Restated Certificate of Incorporation increasing the number of authorized shares of SEACOR from 40,000,000 shares to 60,000,000 shares. To effect this change, SEACOR amended its certificate of incorporation.

 

10.        Stock and Debt Repurchases

 

During the six months ended June 30, 2005, the Company acquired a total of 84,647 shares of Common Stock for treasury at an aggregate cost of $5.6 million. As of June 30, 2005, $37.7 million of repurchase authority granted by the Company’s Board of Directors remains available for acquisition of additional shares of Common Stock, the Company’s 7.2% Senior Notes Due 2009 (“7.2% Notes”) and its 5-7/8% Senior Notes due 2012 (“5-7/8% Notes”). Securities are acquired from time to time through open market purchases, privately negotiated transactions or otherwise, depending on market conditions.

 

11.          Earnings (Loss) Per Common Share

 

Basic earnings (loss) per common share were computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings (loss) per common share were computed based on the weighted average number of common shares issued and outstanding plus all potentially dilutive common shares that would have been outstanding in the relevant periods assuming the vesting of restricted stock grants and the issuance of common shares for stock options and convertible subordinated notes through the application of the treasury stock and if-converted methods. Diluted earnings (loss) per common share exclude certain options and share awards, totaling 110,560 in the three and six months ended June 30, 2005 and 246,645 and 355,015 in the three and six months ended June 30, 2004, respectively, as the effect of their inclusion in the computation would have been antidilutive.

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

Net Income

 

Average O/S
Shares

 

Per
Share

 

Net Income

 

Average O/S
Shares

 

Per
Share

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

25,124

 

18,349

 

$

1.37

 

$

43,715

 

18,299

 

$

2.39

 

Effect of Dilutive Securities, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options and Restricted Stock

 

 

157

 

 

 

 

199

 

 

 

Convertible Securities

 

1,198

 

3,418

 

 

 

2,408

 

3,418

 

 

 

Diluted Earnings Per Common Share

 

$

26,322

 

21,924

 

$

1.20

 

$

46,123

 

21,916

 

$

2.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Common Share

 

$

173

 

18,347

 

$

0.01

 

$

(2,791

)

18,407

 

$

(0.15

)

Effect of Dilutive Securities, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options and Restricted Stock

 

 

129

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Common Share

 

$

173

 

18,476

 

$

0.01

 

$

(2,791

)

18,407

 

$

(0.15

)

 

6



 

12.          Comprehensive Income (Loss)

 

For the three months ended June 30, 2005 and 2004, total comprehensive income was $18.0 million and total comprehensive loss was $0.5 million, respectively. For the six months ended June 30, 2005 and 2004, total comprehensive income was $35.6 million and total comprehensive loss was $1.4 million, respectively. Other comprehensive income (loss) consisted of gains and losses from foreign currency translation adjustments and unrealized holding gains and losses on available-for-sale securities.

 

13.          Stock Compensation

 

Under Statement of Financial Accounting Standards No. 123 (“SFAS 123”), companies could either adopt a “fair value method” of accounting for its stock based compensation plans or continue to use the “intrinsic value method” as prescribed by APB Opinion No. 25. The Company has elected to continue accounting for its stock compensation plans using the intrinsic value method. Had compensation costs for the plans been determined using a fair value method consistent with SFAS 123, the Company’s net income (loss) and earnings (loss) per share would have been reduced to the following pro forma amounts:

 

 

 

For the Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

(in thousands, except per share data)

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss), As Reported

 

$

25,124

 

$

173

 

$

43,715

 

$

(2,791

)

Add: Stock Based Compensation Using Intrinsic Value Method

 

495

 

347

 

914

 

764

 

Less: Stock Based Compensation Using Fair Value Method

 

(642

)

(536

)

(1,207

)

(1,180

)

Net Income (Loss), Pro Forma

 

$

24,977

 

$

(16

)

$

43,422

 

$

(3,207

)

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

As Reported

 

$

1.37

 

$

0.01

 

$

2.39

 

$

(0.15

)

Pro Forma

 

1.36

 

0.00

 

2.37

 

(0.17

)

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Common Share:

 

 

 

 

 

 

 

 

 

As Reported

 

$

1.20

 

$

0.01

 

$

2.11

 

$

(0.15

)

Pro Forma

 

1.19

 

0.00

 

2.09

 

(0.17

)

 

The effects of applying a fair value method consistent with SFAS 123 in this pro forma disclosure are not indicative of future events and the Company anticipates that it will award additional stock based compensation in future periods. During the six months ended June 30, 2005, the Company issued 234,160 shares of Common Stock for restricted stock grants, director stock grants and the exercise of stock options.  In addition, the Company released from treasury 9,344 shares of Common Stock for employee stock plan purchases.

 

14.          New Accounting Pronouncement

 

On December 16, 2004, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 123 (revised 2004), Share-Based Payment, which is a revision of FASB Statement No. 123, Accounting for Stock-Based Compensation. Statement 123 (R) supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and amends FASB Statement No. 95, Statement of Cash Flows. Statement 123 (R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The impact of adopting Statement 123 (R) cannot be predicted at this time because it will depend on levels of share-based payments granted in the future. However, had the Company adopted Statement 123 (R) in prior periods, the impact of that standard would have approximated the impact of the SFAS 123 disclosure of pro forma net income and earnings per share presented in Note 13. The Company will adopt the provisions of Statement 123 (R) on January 1, 2006 using the “modified prospective” approach, recognizing compensation expense for all unvested employee stock options as of that date and for all subsequent employee stock options granted thereafter.

 

7



 

15.          Segment Information

 

Accounting standards require public business enterprises to report information about each of their operating business segments that exceed certain quantitative thresholds or meet certain other reporting requirements. Operating business segments have been defined as a component of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Certain reclassifications of prior period information have been made to conform to the current period’s reportable segment presentation. The Company’s basis of measurement of segment profit or loss has not changed from those previously described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004.

 

(in thousands)

 

Offshore
Marine
Services

 

Environmental
Services

 

Inland
River
Services

 

Helicopter
Services

 

Other

 

Total

 

For the Three Months Ended June 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers

 

$

84,028

 

$

35,635

 

$

27,333

 

$

27,578

 

$

3,257

 

$

177,831

 

Intersegment

 

15

 

 

 

114

 

 

129

 

Operating revenues

 

84,043

 

35,635

 

27,333

 

27,692

 

3,257

 

177,960

 

Operating expenses

 

(50,735

)

(27,347

)

(16,880

)

(20,349

)

(1,997

)

(117,308

)

Administrative and general

 

(8,241

)

(4,177

)

(570

)

(1,759

)

(104

)

(14,851

)

Depreciation and amortization

 

(10,950

)

(778

)

(2,791

)

(3,846

)

(94

)

(18,459

)

Gains on asset sales

 

1,770

 

42

 

 

 

 

1,812

 

Other income (expense), primarily foreign currency

 

4,370

 

34

 

92

 

120

 

 

4,616

 

Equity in earnings of 50% or less owned companies

 

1,764

 

369

 

 

 

461

 

2,594

 

Reportable Segment Profit

 

$

22,021

 

$

3,778

 

$

7,184

 

$

1,858

 

$

1,523

 

36,364

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

(4,516

)

Other income (expense) not included above

 

 

 

 

 

 

 

 

 

 

 

5,488

 

Equity in earnings of 50% or less owned companies

 

 

 

 

 

 

 

 

 

 

 

(2,594

)

Income before Taxes, Minority Interest and Equity Earnings

 

 

 

 

 

 

 

 

 

 

 

$

34,742

 

For the Three Months Ended June 30, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers

 

$

67,008

 

$

14,654

 

$

10,038

 

$

5,703

 

$

 

$

97,403

 

Intersegment

 

31

 

 

 

977

 

 

1,008

 

Operating revenues

 

67,039

 

14,654

 

10,038

 

6,680

 

 

98,411

 

Operating expenses

 

(49,858

)

(10,931

)

(7,282

)

(6,697

)

 

(74,768

)

Administrative and general

 

(8,046

)

(2,255

)

(365

)

(213

)

 

(10,879

)

Depreciation and amortization

 

(10,822

)

(722

)

(1,459

)

(1,054

)

 

(14,057

)

Gains (losses) on asset sales

 

6,364

 

70

 

 

(24

)

 

6,410

 

Other income (expense), primarily foreign currency

 

(687

)

23

 

 

 

 

(664

)

Equity earnings (losses) of 50% or less owned companies

 

909

 

 

 

 

(236

)

673

 

Reportable Segment Profit (Loss)

 

$

4,899

 

$

839

 

$

932

 

$

(1,308

)

$

(236

)

5,126

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

(3,369

)

Other income (expense) not included above

 

 

 

 

 

 

 

 

 

 

 

(1,324

)

Equity in earnings of 50% or less owned companies

 

 

 

 

 

 

 

 

 

 

 

(673

)

Loss before Taxes, Minority Interest and Equity Earnings

 

 

 

 

 

 

 

 

 

 

 

$

(240

)

For the Six Months Ended June 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers

 

$

164,352

 

$

71,528

 

$

52,863

 

$

48,814

 

$

5,459

 

$

343,016

 

Intersegment

 

41

 

 

 

477

 

74

 

592

 

Operating revenues

 

164,393

 

71,528

 

52,863

 

49,291

 

5,533

 

343,608

 

Operating expenses

 

(103,585

)

(54,002

)

(31,652

)

(40,682

)

(3,451

)

(233,372

)

Administrative and general

 

(15,742

)

(7,988

)

(1,078

)

(3,939

)

(505

)

(29,252

)

Depreciation and amortization

 

(21,620

)

(1,638

)

(5,388

)

(7,912

)

(94

)

(36,652

)

Gains on asset sales

 

14,693

 

39

 

11

 

585

 

 

15,328

 

Other income (expense), primarily foreign currency

 

3,830

 

41

 

27

 

192

 

50

 

4,140

 

Equity in earnings of 50% or less owned companies

 

2,860

 

660

 

 

 

691

 

4,211

 

Reportable Segment Profit (Loss)

 

$

44,829

 

$

8,640

 

$

14,783

 

$

(2,465

)

$

2,224

 

68,011

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

(8,704

)

Other income (expense) not included above

 

 

 

 

 

 

 

 

 

 

 

6,352

 

Equity in earnings of 50% or less owned companies

 

 

 

 

 

 

 

 

 

 

 

(4,211

)

Income before Taxes, Minority Interest and Equity Earnings

 

 

 

 

 

 

 

 

 

 

 

$

61,448

 

For the Six Months Ended June 30, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

External customers

 

$

132,982

 

$

31,046

 

$

18,614

 

$

10,735

 

$

 

$

193,377

 

Intersegment

 

73

 

 

 

1,772

 

 

1,845

 

Operating revenues

 

133,055

 

31,046

 

18,614

 

12,507

 

 

195,222

 

Operating expenses

 

(101,250

)

(23,150

)

(13,272

)

(12,904

)

 

(150,576

)

Administrative and general

 

(16,544

)

(4,924

)

(773

)

(850

)

 

(23,091

)

Depreciation and amortization

 

(21,893

)

(1,269

)

(2,694

)

(2,080

)

 

(27,936

)

Gains on asset sales

 

9,784

 

67

 

73

 

124

 

 

10,048

 

Other income (expense), primarily foreign currency

 

(131

)

21

 

 

 

 

(110

)

Equity in earnings (losses) of 50% or less owned companies

 

2,246

 

 

 

 

(1,002

)

1,244

 

Reportable Segment Profit (Loss)

 

$

5,267

 

$

1,791

 

$

1,948

 

$

(3,203

)

$

(1,002

)

4,801

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

(6,374

)

Other income (expense) not included above

 

 

 

 

 

 

 

 

 

 

 

(2,464

)

Equity in earnings of 50% or less owned companies

 

 

 

 

 

 

 

 

 

 

 

(1,244

)

Loss before Taxes, Minority Interest and Equity Earnings

 

 

 

 

 

 

 

 

 

 

 

$

(5,281

)

 

8



 

ITEM 2.           MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Certain statements discussed in Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations), Item 3 (Quantitative and Qualitative Disclosures About Market Risk) and elsewhere in this Form 10-Q constitute “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 as described at the end of Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) of the Company’s Form 10-K for the fiscal year ended December 31, 2004. The words “expect,” “anticipate,” “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.

 

Consolidated Results of Operations

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

Percent Change

 

 

 

2005

 

2004

 

2005

 

2004

 

3 Mos

 

6 Mos

 

(in thousands)

 

Amount

 

Percent

 

Amount

 

Percent

 

Amount

 

Percent

 

Amount

 

Percent

 

‘05 / ‘04

 

‘05 / ‘04

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offshore Marine Services

 

$

84,043

 

47

%

$

67,039

 

69

%

$

164,393

 

48

%

$

133,055

 

69

%

25

%

24

%

Environmental Services

 

35,635

 

20

%

14,654

 

15

%

71,528

 

21

%

31,046

 

16

%

143

%

130

%

Inland River Services

 

27,333

 

15

%

10,038

 

10

%

52,863

 

15

%

18,614

 

10

%

172

%

184

%

Helicopter Services

 

27,692

 

16

%

6,680

 

7

%

49,291

 

14

%

12,507

 

6

%

315

%

294

%

Other and Eliminations

 

3,128

 

2

%

(1,008

)

(1

)%

4,941

 

2

%

(1,845

)

(1

)%

410

%

368

%

 

 

$

177,831

 

100

%

$

97,403

 

100

%

$

343,016

 

100

%

$

193,377

 

100

%

83

%

77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

$

24,643

 

14

%

$

1,748

 

2

%

$

50,966

 

15

%

$

(2,707

)

(2

)%

1,309

%

1,983

%

Other, net

 

10,099

 

6

%

(1,988

)

(2

)%

10,482

 

3

%

(2,574

)

(1

)%

608

%

507

%

Income (loss) before income taxes, minority interest & equity earnings

 

34,742

 

20

%

(240

)

0

%

61,448

 

18

%

(5,281

)

(3

)%

14,576

%

1,264

%

Income tax expense (benefit)

 

12,448

 

(7

)%

169

 

0

%

22,188

 

(6

)%

(1,333

)

1

%

7,266

%

1,765

%

Income (loss) before minority interest & equity earnings

 

22,294

 

13

%

(409

)

0

%

39,260

 

12

%

(3,948

)

(2

)%

5,551

%

1,094

%

Minority interest

 

(154

)

0

%

(91

)

0

%

(120

)

0

%

(86

)

0

%

(69

)%

(40

)%

Equity earnings

 

2,594

 

1

%

673

 

0

%

4,211

 

1

%

1,243

 

1

%

285

%

239

%

Income (loss) from continuing operations

 

24,734

 

14

%

173

 

0

%

43,351

 

13

%

(2,791

)

(1

)%

14,197

%

1,653

%

Discontinued operations

 

390

 

0

%

 

0

%

364

 

0

%

 

0

 

N/A

 

N/A

 

Net income (loss)

 

$

25,124

 

14

%

$

173

 

0

%

$

43,715

 

13

%

$

(2,791

)

(1

)%

14,423

%

1,666

%

 

9



 

Overview

 

The table above provides an analysis of the Company’s consolidated statements of operations for each quarter and six month period indicated. See “Item 1. Financial Statements – Note 15. Segment Information” included in Part I for additional financial information about the Company’s business segments. Additional discussions of results of operations by business segment are presented below. The Company’s operations are divided among the following four business segments: “Offshore Marine Services;” “Environmental Services;” “Inland River Services;” and “Helicopter Services.” The Company also has activities that are referred to and described under “Other.” “Other” primarily includes equity in earnings of 50% or less owned companies unrelated to our reportable business segments and our “Fixed Base Operation” acquired on December 31, 2004 in the acquisition of Era (as described in Note 4 to the financial statements). Our Fixed Base Operation sells fuel and provides ground services to transient corporate aircraft at the Ted Stevens Anchorage International Airport.

 

Consolidated operating revenues increased significantly in the three and six months ended June 30, 2005 (“Current Year Quarter” and “Current Six Months,” respectively) as compared to the three and six months ended June 30, 2004 (“Prior Year Quarter” and “Prior Six Months,” respectively). Demand improved for vessels in Offshore Marine Services. Spill response activities increased in Environmental Services. The fleet grew and freight rates increased in Inland River Services. The acquisition of Era significantly increased the helicopter fleet in Helicopter Services.

 

Consolidated net income also increased significantly in the Current Year Quarter and Current Six Months due principally to those factors affecting the operating revenues and as a result of increased marketable security sales and foreign currency exchange gains that were reported in “Other, net” and equity earnings of 50% or less owned companies. Increased vessel sale gains in the first quarter of 2005 additionally improved profits in the Current Six Months.

 

Offshore Marine Services

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

Percent Change

 

 

 

2005

 

2004

 

2005

 

2004

 

3 Mos

 

6 Mos

 

(in thousands)

 

Amount

 

Percent

 

Amount

 

Percent

 

Amount

 

Percent

 

Amount

 

Percent

 

‘05 / ‘04

 

‘05 / ‘04

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

45,062

 

54

%

$

29,416

 

44

%

$

85,703

 

52

%

$

57,759

 

44

%

53

%

48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United Kingdom

 

14,338

 

17

%

16,725

 

25

%

32,371

 

20

%

33,653

 

25

%

(14

)%

(4

)%

West Africa

 

13,781

 

16

%

11,694

 

17

%

26,333

 

16

%

24,182

 

18

%

18

%

9

%

Latin America/Mexico

 

6,293

 

7

%

6,375

 

10

%

11,653

 

7

%

11,409

 

9

%

(1

)%

2

%

Asia

 

4,024

 

5

%

2,621

 

4

%

7,303

 

4

%

5,479

 

4

%

54

%

33

%

Other

 

545

 

1

%

208

 

0

%

1,030

 

1

%

573

 

0

%

162

%

80

%

Total Foreign

 

38,981

 

46

%

37,623

 

56

%

78,690

 

48

%

75,296

 

56

%

4

%

5

%

 

 

$

84,043

 

100

%

$

67,039

 

100

%

$

164,393

 

100

%

$

133,055

 

100

%

25

%

24

%

Operating Income

 

$

15,887

 

19

%

$

4,677

 

7

%

$

38,139

 

23

%

$

3,152

 

2

%

240

%

1,110

%

 

Operating Revenues.  An improvement in demand for offshore support services that began in the third quarter of 2004 continued through the Current Six Months. This improvement resulted in higher rates per day worked and utilization for Offshore Marine Services’ vessels, which increased operating revenues approximately $10.7 million and $21.7 million in the Current Year Quarter and Current Six Months, respectively. Of these increases, 75% and 80%, respectively, resulted from improved rates per day worked and 25% and 20%, respectively, resulted from improved vessel utilization. Rates per day worked and utilization improved for many of the Company’s vessels operating in the U.S. Gulf of Mexico, offshore West Africa, the North Sea and Asia.

 

The Company continually assesses its asset portfolio and regularly buys, sells and charters vessels in an effort to align Offshore Marine Services’ fleet mix with the needs of customers. Adjustments in fleet mix have resulted in increased operating revenues of $4.6 million and $6.3 million in the Current Year Quarter and Current Six Months. Offshore Marine Services acquired four used anchor handling towing supply and one new crew vessel in the U.S. and sold six supply, two crew and one each anchor handling towing supply, towing supply and mini-supply vessel from its North Sea, West African and U.S. Gulf of Mexico fleets in the Current Six Months.

 

10



 

A net increase in the number of vessels entering time charter-out service upon concluding bareboat-out charter arrangements resulted in increased operating revenues of $2.3 million and $4.2 million in the Current Year Quarter and Current Six Months. Several of Offshore Marine Services’ vessels returned to the U.S. Gulf of Mexico for time-charter-out operations upon concluding bareboat charter-out activities in Latin America and Mexico.

 

A strengthening between comparable periods in the Pound Sterling currency relative to the U.S. dollar increased operating revenues of Offshore Marine Services’ North Sea operations by $0.4 million and $0.9 million in the Current Year Quarter and Current Six Months.

 

Improved results in the Current Year Quarter and Current Six Months were offset by decreased operating revenues earned in the U.S. Gulf of Mexico logistical operations of Offshore Marine Services.

 

Operating Income.  Operating income increased significantly in the Current Year Quarter and Current Six Months. Improved rates per day worked and vessel utilization and fleet modernization contributed significantly to increased profitability in Offshore Marine Services. These improvements were partly offset by increased vessel operating expenses. Vessel repair and maintenance expenses, seamen redundancy costs associated with workforce reductions and fuel costs for foreign vessel operations increased in the Current Year Quarter and Current Six Months. Administrative expenses remained constant in the Current Year Quarter and declined slightly in the Current Six Months.

 

Results in the Current Year Quarter and Current Six Months included gains from asset sales of $1.8 million and $14.7 million, respectively, a decrease of $4.6 million and an increase of $4.9 million as compared to the Prior Year Quarter and Prior Six Months. At dates of disposition, the aggregate carrying value for the 11 vessels sold in the Current Six Months was $92.6 million.

 

Although reported operating revenues increased due to the strengthening in the Pound Sterling currency relative to the U.S. dollar, currency exchange rate fluctuations had no material effect on operating income, because Offshore Marine Services also pays related operating expenses in that same currency.

 

The table below sets forth operational data for Offshore Marine Services during the periods indicated.

 

 

 

Three Months

 

Six Months

 

Percent Change

 

 

 

Ended June 30,

 

Ended June 30,

 

3 Mos

 

6 Mos

 

 

 

2005

 

2004

 

2005

 

2004

 

‘05 / ‘04

 

‘05 / ‘04

 

Rates Per Day Worked ($):

 

 

 

 

 

 

 

 

 

 

 

 

 

Anchor Handling Towing Supply – Domestic

 

23,850

 

19,115

 

28,075

 

17,417

 

25

%

61

%

Anchor Handling Towing Supply – Foreign

 

10,228

 

9,539

 

10,741

 

9,048

 

7

%

19

%

Crew – Domestic

 

4,010

 

3,049

 

4,758

 

3,044

 

32

%

56

%

Crew – Foreign

 

4,768

 

4,127

 

4,737

 

4,099

 

16

%

16

%

Mini-supply – Domestic

 

3,318

 

2,862

 

3,854

 

2,890

 

16

%

33

%

Mini-supply – Foreign

 

4,175

 

3,555

 

4,387

 

3,517

 

17

%

25

%

Other

 

N/A

 

N/A

 

17,000

 

N/A

 

N/A

 

N/A

 

Standby safety – Foreign

 

8,228

 

7,719

 

8,229

 

7,707

 

7

%

7

%

Supply – Domestic

 

7,255

 

5,994

 

9,416

 

6,149

 

21

%

53

%

Supply – Foreign

 

9,350

 

9,729

 

12,794

 

9,397

 

(4

)%

36

%

Towing – Domestic

 

10,083

 

6,040

 

11,687

 

6,047

 

67

%

93

%

Towing – Foreign

 

7,581

 

6,775

 

7,280

 

6,667

 

12

%

9

%

Overall Utilization:

 

 

 

 

 

 

 

 

 

 

 

 

 

Anchor Handling Towing Supply – Domestic

 

83.9

%

68.3

%

85.5

%

68.3

%

23

%

25

%

Anchor Handling Towing Supply – Foreign

 

75.3

%

63.9

%

75.0

%

62.7

%

18

%

20

%

Crew – Domestic

 

90.4

%

87.3

%

88.3

%

83.4

%

4

%

6

%

Crew – Foreign

 

84.0

%

94.9

%

86.3

%

94.3

%

(11

)%

(8

)%

Mini-supply – Domestic

 

92.1

%

86.7

%

87.3

%

84.1

%

6

%

4

%

Mini-supply – Foreign

 

56.8

%

86.5

%

39.4

%

84.6

%

(34

)%

(53

)%

Other

 

0

%

N/A

 

16.6

%

0

%

0

%

N/A

 

Standby safety – Foreign

 

88.8

%

85.9

%

89.5

%

86.4

%

3

%

4

%

Supply – Domestic

 

95.9

%

76.1

%

80.9

%

73.8

%

26

%

10

%

Supply – Foreign

 

78.5

%

72.8

%

71.2

%

73.1

%

8

%

(3

)%

Towing – Domestic

 

91.0

%

91.8

%

86.7

%

70.7

%

(1

)%

23

%

Towing – Foreign

 

96.0

%

61.8

%

93.3

%

64.9

%

55

%

44

%

Overall Fleet

 

87.9

%

83.2

%

85.7

%

80.8

%

6

%

6

%

 

11



 

 

 

Three Months

 

Six Months

 

Percent Change

 

 

 

Ended June 30,

 

Ended June 30,

 

3 Mos

 

6 Mos

 

 

 

2005

 

2004

 

2005

 

2004

 

‘05 / ‘04

 

‘05 / ‘04

 

Available Days:

 

 

 

 

 

 

 

 

 

 

 

 

 

Anchor Handling Towing Supply – Domestic

 

576

 

273

 

841

 

577

 

111

%

46

%

Anchor Handling Towing Supply – Foreign

 

728

 

741

 

1,389

 

1,465

 

(2

)%

(5

)%

Crew – Domestic

 

5,188

 

4,556

 

8,707

 

9,379

 

14

%

(7

)%

Crew – Foreign

 

1,509

 

1,365

 

2,836

 

2,730

 

11

%

4

%

Mini-supply – Domestic

 

2,275

 

2,435

 

3,812

 

4,892

 

(7

)%

(22

)%

Mini-supply – Foreign

 

152

 

273

 

273

 

546

 

(44

)%

(50

)%

Other

 

91

 

N/A

 

181

 

91

 

100

%

99

%

Standby safety – Foreign

 

1,911

 

1,911

 

3,801

 

3,822

 

0

%

(1

)%

Supply – Domestic

 

369

 

731

 

762

 

1,521

 

(50

)%

(50

)%

Supply – Foreign

 

450

 

910

 

1,008

 

1,820

 

(51

)%

(45

)%

Towing – Domestic

 

364

 

182

 

600

 

455

 

100

%

32

%

Towing – Foreign

 

811

 

837

 

1,621

 

1,863

 

(3

)%

(13

)%

Overall Fleet

 

14,424

 

14,214

 

25,831

 

29,161

 

1

%

(11

)%

 

 

 

 

 

 

 

Percent

 

 

 

As of June 30,

 

Change

 

 

 

2005

 

2004

 

‘05 / ‘04

 

Fleet Count:

 

 

 

 

 

 

 

Anchor Handling Towing Supply – Domestic

 

8

 

4

 

100

%

Anchor Handling Towing Supply – Foreign

 

13

 

14

 

(7

)%

Crew – Domestic

 

57

 

49

 

16

%

Crew – Foreign

 

24

 

26

 

(8

)%

Mini-supply – Domestic

 

25

 

26

 

(4

)%

Mini-supply – Foreign

 

4

 

5

 

(20

)%

Other

 

2

 

1

 

100

%

Standby safety – Foreign

 

27

 

27

 

0

%

Supply – Domestic

 

5

 

8

 

(38

)%

Supply – Foreign

 

9

 

14

 

(36

)%

Towing – Domestic

 

4

 

2

 

100

%

Towing – Foreign

 

28

 

31

 

(10

)%

Overall Fleet

 

206

 

207

 

(1

)%

 

Environmental Services

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

Percent Change