Annual report pursuant to Section 13 and 15(d)

Investments, At Equity, And Advances To 50% Or Less Owned Companies

v3.20.4
Investments, At Equity, And Advances To 50% Or Less Owned Companies
12 Months Ended
Dec. 31, 2020
Equity Method Investment, Summarized Financial Information [Abstract]  
Investments, At Equity, And Advances To 50% Or Less Owned Companies
4. INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES
Investments, at equity, and advances to 50% or less owned companies as of December 31, were as follows (in thousands):
Ownership 2020 2019
Ocean Services:
Trailer Bridge(1)
55.3% $ 54,740  $ 56,770 
RF Vessel Holdings 50.0% 21,946  15,878 
Golfo de Mexico 50.0% 2,888  3,485 
KSM 50.0% 2,613  1,916 
82,187  78,049 
Inland Services:
SCFCo 50.0% 29,448  33,705 
Bunge-SCF Grain 50.0% 14,098  15,112 
SCF Bunge Marine(1)
62.5% 4,797  3,990 
Other 50.0% 1,972  2,285 
50,315  55,092 
Witt O’Brien’s:
O’Brien’s do Brazil 50.0% 1,247  1,274 
Other:
VA&E 23.8% 9,814  10,448 
Avion 39.1% 10,310  10,706 
Other 40.0% 47.5% 1,526  1,539 
21,650  22,693 
$ 155,399  $ 157,108 
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(1)The Company’s ownership percentage represents its economic interest in the 50% or less owned company.
Combined Condensed Financial Information. Summarized financial information for the Company’s investments, at equity, excluding Trailer Bridge, as of and for the years ended December 31, was as follows (in thousands):
2020 2019
Current assets $ 259,498  $ 234,298 
Noncurrent assets 220,967  214,930 
Current liabilities 197,419  171,765 
Noncurrent liabilities 132,021  118,130 

2020 2019 2018
Operating Revenues $ 1,262,122  $ 1,060,676  $ 841,203 
Costs and Expenses:
Operating and administrative 1,241,841  1,045,132  817,235 
Depreciation 14,736  14,995  25,117 
1,256,577  1,060,127  842,352 
Gains on Asset Dispositions, Net 76  —  38 
Operating Income (Loss) $ 5,621  $ 549  $ (1,111)
Net Loss $ (18,109) $ (8,643) $ (14,161)
As of December 31, 2020 and 2019, cumulative undistributed net losses of 50% or less owned companies accounted for using the equity method and included in the Company’s consolidated retained earnings were $81.5 million and $69.8 million, respectively.
Trailer Bridge. Trailer Bridge, Inc. (“Trailer Bridge”), an operator of U.S.-flag RORO and deck barges, provides marine transportation services between Jacksonville, Florida, San Juan, Puerto Rico and Puerto Plata, Dominican Republic. During the years ended December 31, 2020, 2019 and 2018, the Company earned revenues of $3.7 million, $4.0 million and $3.5 million, respectively, from the time charter of one U.S.-flag offshore tug to Trailer Bridge.
Summarized financial information for Trailer Bridge as of and for the years ended December 31, was as follows (in thousands):
2020 2019
Current assets $ 46,951  $ 43,996 
Noncurrent assets 73,098  75,394 
Current liabilities 18,022  16,715 
Noncurrent liabilities 3,058  35 

2020 2019 2018
Operating Revenues $ 175,219  $ 158,291  $ 173,495 
Costs and Expenses:
Operating and administrative 172,589  149,662  148,952 
Depreciation 8,536  7,938  7,546 
181,125  157,600  156,498 
Gains (Losses) on Assets Dispositions 1,489  563  (6)
Operating Income (Loss) (4,417) 1,254  16,991 
Interest expense (3) (61) (106)
Other expense, net —  (375) (300)
Income tax expense (2,240) —  — 
Net Income (Loss) $ (6,660) $ 818  $ 16,585 
RF Vessel Holdings. Rail Ferry Vessel Holdings LLC (“RF Vessel Holdings”), owns two foreign-flag rail ferries. During the years ended December 31, 2020, 2019 and 2018, the Company and its partner each contributed capital of $6.8 million, $4.7 million and $9.1 million, respectively, to RF Vessel Holdings primarily related to the construction of two new foreign-flag rail ferries with scheduled deliveries during 2021.
Golfo de Mexico. Golfo de Mexico Rail Ferry Holdings LLC (“Golfo de Mexico”), operates the two foreign-flag rail ferries owned by RF Vessel Holdings. During the years ended December 31, 2020, 2019 and 2018, the Company and its partner each contributed capital of $1.0 million, $0.5 million and $4.6 million, respectively, to Golfo de Mexico. The Company provides Golfo de Mexico with technical, commercial, administrative and construction management services, and during the years ended December 31, 2020, 2019 and 2018, the Company received $1.9 million, $1.8 million and $1.1 million, respectively, for these services.
KSM. Kotug Seabulk Maritime LLC (“KSM”) operates four foreign-flag harbor tugs, two foreign-flag specialty vessels and one foreign-flag ocean liquid tank barge in Freeport, Grand Bahama, supporting terminal operations. During the year ended December 31, 2018, the Company and its partner each contributed capital of $1.0 million to KSM. The Company provides KSM with technical, commercial and administrative management services and during the years ended December 31, 2020, 2019 and 2018, received $0.4 million, $0.4 million and $0.4 million, respectively, for these services. During the years ended December 31, 2020, 2019 and 2018, the Company earned revenues of $1.7 million, $1.4 million and $1.3 million respectively, from the bareboat charter of two foreign-flag harbor tugs to KSM.
SCFCo. SCFCo Holdings LLC (“SCFCo”) operates inland river dry-cargo barges and inland river towboats on the Parana-Paraguay Waterway and a terminal facility at Port Ibicuy, Argentina. During the year ended December 31, 2018, the Company received repayments on working capital advances and loans of $2.6 million from SCFCo. As of December 31, 2020, $38.6 million of working capital advances and loans remained outstanding. The Company provides SCFCo with certain information technology services and during the years ended December 31, 2020, 2019 and 2018, received $0.1 million, $0.1 million and $0.1 million, respectively, for these services. As of December 31, 2020, the Company’s carrying value of its investment in SCFCo was $17.0 million lower than its proportionate share of the underlying equity in SCFCo.
Bunge-SCF Grain. Bunge-SCF Grain LLC (“Bunge-SCF Grain”) operates terminal grain elevators in Illinois. The Company has provided Bunge-SCF Grain with working capital advances. As of December 31, 2020, the total outstanding balance of working capital advances was $7.0 million. Bunge-SCF Grain also operates and manages the Company’s grain storage and handling facility in McLeansboro, Illinois. During the years ended December 31, 2020, 2019 and 2018, the Company earned revenues of $0.7 million, $0.7 million and $0.9 million, respectively, from the lease of this terminal facility to Bunge-SCF Grain. Certain dry-cargo barge pools managed by the Company provide freight transportation to Bunge-SCF Grain and those pools received $25.5 million, $24.9 million and $10.7 million for these services during the years ended December 31, 2020, 2019 and 2018, respectively.
SCF Bunge Marine. SCF Bunge Marine LLC (“SCF Bunge Marine”) provides towing services on the U.S. Inland Waterways, primarily the Mississippi River, Illinois River, Tennessee River and Ohio River. The Company time charters eight inland river towboats to SCF Bunge Marine, of which four are bareboat chartered-in by the Company from a third-party leasing entity. The Company and its partner are required to fund SCF Bunge Marine, if necessary, to support the payment of its time charter obligations to the Company. During the years ended December 31, 2020, 2019 and 2018, the Company earned revenues of $7.9 million, $6.8 million and $3.3 million, respectively, from the time charter of these inland river towboats to SCF Bunge Marine. During the years ended December 31, 2019 and 2018, the Company contributed capital of $0.3 million and $0.5 million, respectively, to SCF Bunge Marine. During the years ended December 31, 2020 and 2018, the Company received dividends of $1.3 million and $4.6 million, respectively, from SCF Bunge Marine. Certain dry-cargo barge pools managed by the Company obtain towing services from SCF Bunge Marine and those pools paid $52.5 million, $53.3 million and $54.5 million to SCF Bunge Marine for these services during the years ended December 31, 2020, 2019 and 2018, respectively.
Other Inland Services. The Company’s other Inland Services 50% or less owned company operates a fabrication facility. During the year ended December 31, 2020, the Company and its partner each received a cash dividend of $0.3 million from this 50% or less owned company. During the year ended December 31 2019, the Company and its partner each received a noncash dividend of one specialty barge valued at $0.6 million from this 50% or less owned company.
O’Brien’s do Brazil. O’Brien’s do Brasil Consultoria em Emergencias e Meio Ambiente A/A (“O’Brien’s do Brazil”) is an emergency consulting organization providing preparedness, response and recovery services in Brazil. During the years ended December 31, 2020, 2019 and 2018, the Company received dividends of $0.6 million, $0.1 million and $0.2 million, respectively from O’Brien’s do Brazil.
Hawker Pacific. Hawker Pacific Airservices Limited (“Hawker Pacific”) is an aviation sales and support organization and a distributor of aviation components from leading manufacturers. On April 30, 2018, the Company sold its 34.2% interest in Hawker Pacific for $78.0 million in cash and recognized a gain of $53.9 million, which is included in other, net in the accompanying consolidated statements of income. During the year ended December 31, 2018, the Company received management fees of $0.1 million from Hawker Pacific.
VA&E. VA&E Trading LLP (“VA&E”), was formed to focus on the global origination, trading and merchandising of sugar and other commodities, pairing producers and buyers and arranging for the transportation and logistics of the product. During the year ended December 31, 2019, the Company received capital distributions of $3.7 million from VA&E, which reduced the Company’s noncontrolling interest in VA&E to 23.8%. The Company provides VA&E an uncommitted credit facility of up to $3.5 million and a subordinated loan of $4.4 million. During the year ended December 31, 2018, the Company received repayments of $5.4 million from VA&E and advanced $5.4 million to VA&E on the uncommitted credit facility. During the year ended December 31, 2019, the Company advanced $0.5 million to VA&E on the subordinated loan. During the year ended December 31, 2020, the Company received repayments of $0.3 million from VA&E on the subordinated loan. During the year ended December 31, 2020, the Company provided a working capital advance of $1.2 million to VA&E and received repayments on the working capital advance of $1.2 million from VA&E. As of December 31, 2020, outstanding advances to VA&E were $8.4 million, inclusive of accrued and unpaid interest. During the year ended December 31, 2018, the Company received dividends of $0.4 million from VA&E.
Avion. Avion Pacific Limited (“Avion”) is a distributor of aircraft and aircraft related parts. During the year ended December 31, 2018, the Company received dividends of $0.8 million from Avion.
Other. The Company’s other 50% or less owned companies are primarily industrial aviation businesses in Asia. During the year ended December 31, 2018, the Company received repayments on working capital advances of $0.4 million and received capital distributions of $0.6 million from these 50% or less owned companies. As of December 31, 2020, total advances outstanding to these 50% or less owned companies were $2.0 million.