SEACOR Marine Announces Results for Its Second Quarter and Six Months Ended June 30, 2017

HOUMA, La., Aug. 10, 2017 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”) today announced its results for its second quarter and six months ended June 30, 2017.

For the second quarter and six months ended June 30, 2017, net loss attributable to SEACOR Marine Holdings Inc. was $34.0 million ($1.93 per diluted share) and $41.4 million ($2.34 per diluted share), respectively.  For the second quarter and six months ended June 30, 2016, net loss attributable to SEACOR Marine Holdings Inc. was $30.6 million ($1.73 per diluted share) and $42.5 million ($2.41 per diluted share), respectively.

John Gellert, the Company’s Chief Executive Officer, commented:

“The second quarter of 2017 was transformational for SEACOR Marine. Following our spin-off from SEACOR Holdings, we are now a company with a single investment focus on offshore marine services.  We are well-positioned for the future due to our financial stability and specialized fleet focused on production and maintenance services. 

“Direct vessel profit (“DVP”) declined in the second quarter to $1.5 million from $4.5 million in the first quarter.  Our six months results included reactivation and mobilization costs of $12.1 million on bringing cold-stacked vessels into active service plus main engine overhaul costs of $4.0 million.  We believe the additional expenses (and use of cash) from reactivating equipment will prove worthwhile, and our active fleet experienced increased overall utilization in the second quarter, especially in our U.S. liftboat and North Sea windfarm operations. Although our business mix is increasingly seasonal and the outlook for platform supply and anchor handling towing supply vessels continues to be challenging, we believe that demand for our mix of assets is better today than last year and will continue to improve. 

“Our balance sheet and operating results for the quarter reflect the consolidation of: (i) the Sea-Cat Crewzer joint ventures owning four catamarans following the acquisition of our partners’ 50% interest at the end of April and (ii) Falcon Global LLC (“Falcon Global”), our partnership owning two newbuild liftboats in the Middle East, when we obtained voting control at the end of the first quarter.  The acquired interests in the catamarans and the newly delivered liftboats further diversify our asset base and, we believe, offer good prospects for the future.

"Finally, I am pleased to announce that one of our subsidiaries entered into a definitive agreement to create a joint venture with Montco Offshore, Inc. pursuant to which we and Montco would contribute in the aggregate 19 liftboat vessels to the venture, including Falcon Global’s two newbuild liftboats. Montco had previously filed a voluntary petition for relief under U.S. bankruptcy laws and today the bankruptcy court has approved our subsidiary as the sponsor of Montco’s plan of reorganization.  Closing would occur after Montco’s plan of reorganization has been approved. Additional details about the transaction will be set forth in a Current Report on Form 8-K that we intend to file tomorrow.”

Net loss attributable to SEACOR Marine Holdings Inc. for the second quarter ended June 30, 2017 of $34.0 million ($1.93 per diluted share) compared with a net loss of $7.4 million ($0.42 per diluted share) for the first quarter ended March 31, 2017.  Results for the second quarter ended June 30, 2017 included:

  • Reactivation and mobilization costs of $6.9 million on activating cold-stacked vessels;
  • Maintenance costs of $4.0 million on the replacement of main engines in two fast support vessels (expensed rather than capitalized in accordance with the Company’s capital expenditure policies);
  • Administrative and general expenses of $6.7 million on the accelerated vesting of share awards previously granted to Company personnel by SEACOR Holdings Inc. (the Company’s former parent company, “SEACOR Holdings”) upon the Company’s spin-off from SEACOR Holdings;
  • Administrative and general expenses of $3.4 million on non-deductible spin-off related expenses reimbursed to SEACOR Holdings upon the Company’s spin-off from SEACOR Holdings;
  • Non-cash impairment charges of $5.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to being returned to its owner;
  • A full quarter’s results for the two foreign-flag liftboats owned and operated by Falcon Global, a 50% owned and consolidated subsidiary of the Company. During the preceding quarter, the Company’s partner declined to participate in a capital call from Falcon Global and, as a consequence, the Company obtained 100% voting control of Falcon Global and began to consolidate Falcon Global effective March 31, 2017, which at that time had cash on hand of $1.9 million and total debt of $58.3 million; and 
  • Two month’s results for four high speed catamaran fast support vessels owned and operated by Sea-Cat Crewzer LLC and Sea-Cat Crewzer II LLC (collectively “Sea-Cat Crewzers”), each a 100% owned and consolidated subsidiary of the Company. On April 28, 2017, the Company acquired 100% controlling interests in Sea-Cat Crewzers through the acquisition of its partners’ 50% ownership interests for $15.7 million. At the time of acquisition, Sea-Cat Crewzers had cash on hand of $5.9 million and total debt of $41.2 million.

The Company’s DVP for the six months ended June 30, 2017 and the one-time costs of $10.1 million associated with the Company’s spin-off from SEACOR Holdings significantly affected cash provided by operating activities.  This release includes a table presenting cash from operating activities for the previous five quarters highlighting the impact.

A comparison of results for the second quarter ended June 30, 2017 with the preceding quarter ended March 31, 2017 is included below.

Operating Revenues.  Time charter revenues were $8.1 million higher compared with the preceding quarter.  On a total fleet basis, time charter revenues increased by $1.9 million from improved utilization on the active fleet, $3.4 million from improved utilization on the net reactivation of cold-stacked vessels, $2.2 million from net fleet additions (primarily due to Falcon Global and Sea-Cat Crewzers), and $0.6 million due to favorable changes in currency exchange rates.

During the six months ended June 30, 2017, the Company reactivated 13 vessels from cold-stacked status, cold-stacked five previously active vessels, sold two cold-stacked vessels and removed from service two cold-stacked vessels.

On a total fleet basis, excluding wind farm utility vessels but including cold-stacked vessels (those that are not currently available for active service), utilization of the fleet increased from 38% to 43%, and average rates per day worked increased by 2% from $8,272 to $8,431.  Days available for charter were 7% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter.  This release includes a table presenting time charter statistics by vessel class.

Direct Vessel Profit (“DVP”) by Region.  DVP generated by the Company’s operating regions was $1.5 million compared with $4.5 million in the preceding quarter, a $3.0 million decline.  Improvements in operating revenues of $8.0 million were offset by increased direct operating costs of $11.0 million.  Personnel costs were $3.8 million higher primarily from the net reactivation of cold-stacked vessels and net fleet additions.  Repairs and maintenance costs were $6.8 million higher primarily from the replacement of main engines in two fast support vessels for $4.0 million.  Results by region are as follows:

United States, primarily Gulf of Mexico.  Direct vessel loss was $1.1 million compared with $1.8 million in the preceding quarter, a $0.7 million improvement.  Time charter revenues were $1.9 million higher, including $2.2 million for the liftboat fleet, primarily from improved utilization on the net reactivation of cold-stacked vessels.  On a total fleet basis, including cold-stacked vessels, utilization increased from 7% to 13%, and average rates per day worked decreased from $10,133 to $9,619.  Days available for charter were 2% higher in the second quarter primarily due to more operating days during the quarter.  Improvements in operating revenues of $2.3 million were offset by increased direct operating costs of $1.6 million.  Personnel costs were $1.1 million higher primarily as the result of the net reactivation of cold-stacked vessels.  As of June 30, 2017, the Company had 32 of 42 owned and leased-in vessels cold-stacked in the U.S. (ten anchor handling towing supply vessels, 16 fast support vessels, five liftboats and one specialty vessel) compared with 35 of 44 vessels as of March 31, 2017.  As of June 30, 2017, the Company had one anchor handling towing supply vessel, one fast support vessel and one supply vessel retired and removed from service in this region.

Africa, primarily West Africa.  Direct vessel loss was $1.3 million compared with DVP of $0.4 million in the preceding quarter, a $1.7 million decline.  Time charter revenues were $1.9 million higher primarily due to net fleet additions.  On a total fleet basis, including cold-stacked vessels, utilization increased from 61% to 67%, and average rates per day worked increased from $9,388 to $10,348. Days available for charter were 10% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter.  Improvements in operating revenues of $2.0 million were more than offset by increased direct operating costs of $3.7 million.  Repairs and maintenance costs were $2.7 million higher primarily from the replacement of main engines in one fast support vessel for $2.0 million.  As of June 30, 2017, the Company had one of 14 owned and leased-in vessels cold-stacked in Africa (one specialty vessel) compared with one of 13 vessels as of March 31, 2017.  As of June 30, 2017, the Company had two fast support vessels retired and removed from service in this region.

Middle East and Asia.  Direct vessel loss was $3.3 million compared with DVP of $0.5 million in the preceding quarter, a $3.8 million decline.  Time charter revenues were $1.6 million higher primarily as the result of improved utilization of the active fleet, improved utilization on the net reactivation of cold-stacked vessels and net fleet additions.  On a total fleet basis, including cold-stacked vessels, utilization increased from 49% to 55%, and average rates per day worked decreased from $7,017 to $6,580.  Days available for charter were 21% higher in the second quarter primarily due to net fleet additions and more operating days during the quarter.  Improvements in operating revenues of $0.8 million were offset by increased direct operating costs of $4.6 million.  Personnel costs were $1.0 million higher primarily due to net fleet additions.  Repairs and maintenance costs were $3.4 million higher primarily from the replacement of main engines in one fast support vessel for $2.0 million.  As of June 30, 2017, the Company had three of 23 owned vessels cold-stacked in the Middle East and Asia (one supply vessel and two windfarm utility vessels) compared with two of 21 vessels as of March 31, 2017.

Brazil, Mexico, Central and South America.  DVP was $1.0 million compared with $1.2 million in the preceding quarter.  As of June 30, 2017, the Company had one of four owned vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of three vessels as of March 31, 2017.  As of June 30, 2017, the Company had one supply vessel retired and removed from service in this region.

Europe, primarily North Sea.  DVP was $6.2 million compared with $4.2 million in the preceding quarter, a $2.0 million improvement.  Time charter revenues were $2.6 million higher, including $2.1 million from the wind farm utility fleet on seasonally improved market conditions, as a result of improved utilization of the active fleet of $2.0 million and favorable changes in currency exchange rates of $0.6 million.  For the standby safety fleet, utilization was unchanged at 80%, and average rates per day worked increased from $8,131 to $8,457.  For the wind farm utility fleet, utilization increased from 69% to 95%, and average rates per day worked increased from $2,005 to $2,124.

Administrative and general.  Administrative and general expenses were $9.9 million higher compared with the preceding quarter primarily due to one-time costs associated with the Company’s spin-off from SEACOR Holdings on June 1, 2017.  The Company incurred an additional expense of $6.7 million on the accelerated vesting of share awards previously granted to Company personnel by SEACOR Holdings and an additional expense of $3.4 million on non-deductible spin-off related expenses reimbursed to SEACOR Holdings.

Depreciation and amortization.  Depreciation expenses were $2.1 million higher compared with the preceding quarter primarily due to net fleet additions.

Asset Dispositions and Impairments.  During the second quarter, the Company recognized impairment charges of $5.7 million primarily associated with one leased-in supply vessel removed from service as it is not expected to be marketed prior to being returned to its owner and sold one supply vessel, two offshore support vessels previously retired and removed from service, and other equipment for net proceeds of $1.2 million and losses of $0.6 million.  During the preceding quarter, the Company sold two liftboats, two offshore support vessels previously retired and removed from service, and other equipment for net proceeds of $8.8 million ($8.3 million in cash and $0.5 million of previously received deposits) and gains of $4.8 million.

Interest expense.  Interest expense was $1.4 million higher compared with the preceding quarter primarily due to the debt facilities of Falcon Global and Sea-Cat Crewzers.

Marketable security activities.  During the preceding quarter, marketable security gains of $11.7 million were primarily due to realized gains on a long security position exited by the Company.

Equity in earnings of 50% or less owned companies.  Equity earnings were $1.1 million higher compared with the preceding quarter primarily due to equity losses recognized during the preceding quarter from Falcon Global.

Capital Commitments.  As of June 30, 2017, the Company had unfunded capital commitments of $76.4 million that included six fast support vessels, three supply vessels and one wind farm utility vessel.  These commitments included $15.4 million for one supply vessel that may be assumed by a third party at their option.  The Company’s capital commitments by year of expected payment are as follows (in thousands):

Remainder of 2017   $10,457 
2018   50,960 
2019   13,219 
2020   1,800 
    $76,436 

Subsequent to June 30, 2017, the Company committed to purchase additional equipment for $12.3 million.

Liquidity and Debt.  As of June 30, 2017, the Company’s balances of cash, cash equivalents, restricted cash, marketable securities and construction reserve funds totaled $221.3 million and its total outstanding debt was $315.5 million (net of $35.7 million in discount and issue costs).

SEACOR Marine is among the leading providers of global marine and support transportation services to offshore oil and gas exploration, development and production facilities worldwide. SEACOR Marine currently operates a diverse fleet of offshore support and specialty vessels that deliver cargo and personnel to offshore installations; handle anchors and mooring equipment required to tether rigs to the seabed; tow rigs and assist in placing them on location and moving them between regions; provides construction, well workover and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance and repair.  Additionally, SEACOR Marine’s vessels provide accommodations for technicians and specialists, and provide safety support and emergency response services.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters.  These statements are not guarantees of future performance and actual events or results may differ significantly from these statements.  Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of a decline in the price of oil and resulting decrease in capital spending by oil and gas companies, an oversupply of newly built offshore support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums, weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to a decline in the price of oil, an oversupply of newly built offshore support vessels, increased government legislation and regulation of the Company’s businesses could increase cost of operations, increased competition if the Jones Act and related regulations are repealed, liability, legal fees and costs in connection with the provision of emergency response services, such as the response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand for the Company’s services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, including as a result of the recent vote in the U.K. to leave the European Union, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Jones Act and related regulations on the amount of foreign ownership of the Company’s Common Stock, operational risks, effects of adverse weather conditions and seasonality, adequacy of insurance coverage, the ability to remediate the material weaknesses the Company has identified in its internal controls over financial reporting, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in “Risk Factors” included in the Information Statement filed as Exhibit 99.1 to Amendment No. 3 to the Company’s Registration Statement on Form 10 and other reports filed by the Company with the SEC.  It should be understood that it is not possible to predict or identify all such factors.  Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties.  Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law.  It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including  Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).  These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

For additional information, contact Jesus Llorca, Executive Vice President - Corporate Development and Secretary, at (985) 876-5400 or visit SEACOR Marine’s website at www.seacormarine.com.

 
SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except share data, unaudited)
 
   Three Months Ended  Six Months Ended
   June 30,  June 30,
   2017  2016  2017  2016
Operating Revenues  $42,323   $57,271   $76,627   $117,150 
Costs and Expenses:            
Operating  44,482   44,245   77,861   93,095 
Administrative and general  21,705   11,929   33,531   24,327 
Depreciation and amortization  14,633   15,254   27,136   30,092 
   80,820   71,428   138,528   147,514 
Losses on Asset Dispositions and Impairments, Net  (6,318)  (20,357)  (1,499)  (20,737)
Operating Loss  (44,815)  (34,514)  (63,400)  (51,101)
Other Income (Expense):            
Interest income  275   987   1,125   2,398 
Interest expense  (4,546)  (2,585)  (7,728)  (4,943)
SEACOR Holdings management fees  (1,283)  (1,925)  (3,208)  (3,850)
SEACOR Holdings guarantee fees  (75)  (31)  (151)  (157)
Marketable security gains (losses), net  (109)  (2,492)  11,629   (6,077)
Derivative gains (losses), net  (213)  163   (302)  3,061 
Foreign currency losses, net  (1,094)  (819)  (1,283)  (2,379)
Other, net        (1)  265 
   (7,045)  (6,702)  81   (11,682)
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies  (51,860)  (41,216)  (63,319)  (62,783)
Income Tax Benefit  (13,800)  (13,742)  (17,222)  (20,568)
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies  (38,060)  (27,474)  (46,097)  (42,215)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax  1,571   (3,315)  2,009   (1,154)
Net Loss  (36,489)  (30,789)  (44,088)  (43,369)
Net Loss attributable to Noncontrolling Interests in Subsidiaries  (2,497)  (209)  (2,701)  (830)
Net Loss attributable to SEACOR Marine Holdings Inc.  $(33,992)  $(30,580)  $(41,387)  $(42,539)
             
Basic and Diluted Losses Per Common Share of SEACOR Marine Holdings Inc.  $(1.93)  $(1.73)  $(2.34)  $(2.41)
             
Basic and Diluted Weighted Average Common Shares Outstanding  17,631,567   17,671,356   17,651,352   17,671,356 


 
SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except per share data, unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Operating Revenues:               
Time charter  $38,803   $30,730   $38,047   $47,473   $49,234 
Bareboat charter  1,156   1,143   1,169   1,967   3,045 
Other marine services  2,364   2,431   5,145   4,685   4,992 
   42,323   34,304   44,361   54,125   57,271 
Costs and Expenses:               
Operating, excluding leased-in equipment  40,792   29,788   28,459   36,628   39,793 
Operating, leased-in equipment  3,690   3,591   4,212   4,531   4,452 
Administrative and general  21,705   11,826   14,393   10,588   11,929 
Depreciation and amortization  14,633   12,503   13,764   14,213   15,254 
   80,820   57,708   60,828   65,960   71,428 
Gains (Losses) on Asset Dispositions and Impairments, Net  (6,318)  4,819   (66,252)  (29,233)  (20,357)
Operating Loss  (44,815)  (18,585)  (82,719)  (41,068)  (34,514)
Other Income (Expense):               
Interest income  275   850   1,087   973   987 
Interest expense  (4,546)  (3,182)  (2,553)  (2,512)  (2,585)
SEACOR Holdings management fees  (1,283)  (1,925)  (1,925)  (1,925)  (1,925)
SEACOR Holdings guarantee fees  (75)  (76)  (78)  (80)  (31)
Marketable security gains (losses), net  (109)  11,738   4,413   1,619   (2,492)
Derivative gains (losses), net  (213)  (89)  (82)  16   163 
Foreign currency gains (losses), net  (1,094)  (189)  151   (1,084)  (819)
Other, net     (1)  (1,756)  1    
   (7,045)  7,126   (743)  (2,992)  (6,702)
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies  (51,860)  (11,459)  (83,462)  (44,060)  (41,216)
Income Tax Benefit  (13,800)  (3,422)  (27,638)  (15,263)  (13,742)
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies  (38,060)  (8,037)  (55,824)  (28,797)  (27,474)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax  1,571   438   (5,950)  790   (3,315)
Net Loss  (36,489)  (7,599)  (61,774)  (28,007)  (30,789)
Net Loss attributable to Noncontrolling Interests in Subsidiaries  (2,497)  (204)  (199)  (74)  (209)
Net Loss attributable to SEACOR Marine Holdings Inc.  $(33,992)  $(7,395)  $(61,575)  $(27,933)  $(30,580)
                
Basic and Diluted Losses Per Common Share of SEACOR Marine Holdings Inc.  $(1.93)  $(0.42)  $(3.48)  $(1.58)  $(1.73)
                
Basic and Diluted Weighted Average Common Shares of Outstanding  17,632   17,671   17,671   17,671   17,671 
Common Shares Outstanding at Period End  17,671   17,671   17,671   17,671   17,671 


 
SEACOR MARINE HOLDINGS INC.
TIME CHARTER STATISTICS
(unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Rates Per Day Worked:               
Anchor handling towing supply  $10,774   $13,341   $13,686   $16,469   $20,828 
Fast support  8,086   7,417   7,875   7,848   7,636 
Supply  6,028   11,707   6,298   5,935   5,709 
Standby safety  8,457   8,131   8,284   8,904   9,632 
Specialty  12,000      37,024   30,593   18,642 
Liftboats  10,315   9,782   13,486   16,822   11,852 
Overall Average Rates Per Day Worked
(excluding wind farm utility)
  8,431   8,272   9,093   10,089   10,354 
Wind farm utility  2,124   2,005   2,104   2,260   2,394 
Overall Average Rates Per Day Worked  5,649   5,726   6,308   6,834   7,352 
                
Utilization:               
Anchor handling towing supply  24%  15%  20%  27%  33%
Fast support  43%  44%  47%  62%  69%
Supply  48%  20%  19%  31%  27%
Standby safety  80%  80%  81%  78%  77%
Specialty  5%  %  23%  58%  81%
Liftboats  16%  1%  1%  8%  6%
Overall Fleet Utilization (excluding wind farm utility)  43%  38%  39%  47%  50%
Wind farm utility  90%  65%  71%  86%  77%
Overall Fleet Utilization  56%  46%  47%  58%  57%
                
Available Days:               
Anchor handling towing supply  1,274   1,260   1,564   1,483   1,365 
Fast support  3,684   3,212   3,312   2,389   2,174 
Supply  580   630   953   1,109   1,140 
Standby safety  1,820   1,800   1,840   1,989   2,104 
Specialty  273   270   337   276   273 
Liftboats  1,365   1,265   1,380   1,380   1,365 
Overall Fleet Available Days
(excluding wind farm utility)
  8,996   8,437   9,386   8,626   8,421 
Wind farm utility  3,367   3,330   3,404   3,345   3,276 
Overall Fleet Available Days  12,363   11,767   12,790   11,971   11,697 


 
SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION
(in thousands, except for statistics, unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
United States, primarily Gulf of Mexico               
Operating revenues:               
Time charter  $4,889   $2,995   $2,694   $6,440   $8,726 
Other marine services  1,198   826   906   1,083   1,054 
   6,087   3,821   3,600   7,523   9,780 
Direct operating expenses:               
Personnel  4,183   3,130   3,310   4,865   6,368 
Repairs and maintenance  937   737   551   768   643 
Drydocking  310   573   19   (8)  175 
Insurance and loss reserves  1,205   805   484   1,200   680 
Fuel, lubes and supplies  545   310   112   533   234 
Other  51   72   (36)  118   28 
   7,231   5,627   4,440   7,476   8,128 
Direct Vessel Profit (Loss)  $(1,144)  $(1,806)  $(840)  $47   $1,652 
                
Leased-in equipment (included in operating costs and expenses)  $2,205   $2,211   $2,215   $2,040   $1,858 
Time Charter Statistics:               
Overall average rates per day worked  $9,619   $10,133   $9,316   $13,810   $17,109 
Overall fleet utilization  13%  7%  7%  14%  17%
Overall fleet available days  4,063   3,998   4,169   3,264   3,040 
Out-of-service days for repairs, maintenance and drydockings  221   159   32   8   69 
Out-of-service days for cold-stacked status  3,070   3,456   3,794   2,466   2,188 
                
Africa, primarily West Africa               
Operating revenues:               
Time charter  $7,786   $5,847   $8,072   $8,593   $8,902 
Other marine services  215   192   582   238   131 
   8,001   6,039   8,654   8,831   9,033 
Direct operating expenses:               
Personnel  3,428   2,608   3,024   3,195   3,324 
Repairs and maintenance  3,234   544   694   441   522 
Drydocking  683   1,057   (103)  617   426 
Insurance and loss reserves  357   182   144   147   36 
Fuel, lubes and supplies  704   559   790   748   598 
Other  871   646   221   890   883 
   9,277   5,596   4,770   6,038   5,789 
Direct Vessel Profit (Loss)  $(1,276)  $443   $3,884   $2,793   $3,244 
                
Leased-in equipment (included in operating costs and expenses)  $969   $970   $972   $974   $975 
Time Charter Statistics:               
Overall average rates per day worked  $10,348   $9,388   $10,511   $9,858   $9,938 
Overall fleet utilization  67%  61%  53%  62%  65%
Overall fleet available days  1,123   1,019   1,445   1,401   1,373 
Out-of-service days for repairs, maintenance and drydockings  125   19   56   58   37 
Out-of-service days for cold-stacked status  91   180   507   289   273 


 
SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except for statistics, unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Middle East and Asia               
Operating revenues:               
Time charter  $7,415   $5,823   $10,187   $12,763   $10,554 
Other marine services  109   877   2,935   2,566   2,641 
   7,524   6,700   13,122   15,329   13,195 
Direct operating expenses:               
Personnel  4,147   3,123   4,367   4,778   5,058 
Repairs and maintenance  3,947   576   1,539   1,394   1,659 
Drydocking  358   158   5   719   (284)
Insurance and loss reserves  353   346   118   199   151 
Fuel, lubes and supplies  908   524   802   961   1,498 
Other  1,061   1,465   851   790   827 
   10,774   6,192   7,682   8,841   8,909 
Direct Vessel Profit (Loss)  $(3,250)  $508   $5,440   $6,488   $4,286 
                
Leased-in equipment (included in operating costs and expenses)  $516   $346   $836   $1,254   $1,123 
Time Charter Statistics:               
Overall average rates per day worked  $6,580   $7,017   $9,083   $10,179   $8,649 
Overall fleet utilization  55%  49%  58%  63%  61%
Overall fleet available days  2,067   1,710   1,932   1,988   2,002 
Out-of-service days for repairs, maintenance and drydockings  122   50   3   24   73 
Out-of-service days for cold-stacked status  304   320   186      47 
                
Brazil, Mexico, Central and South America               
Operating revenues:               
Bareboat charter  $1,156   $1,143   $1,169   $1,967   $3,045 
Other marine services  162   75   76   220   498 
   1,318   1,218   1,245   2,187   3,543 
Direct operating expenses:               
Personnel  148   13   24   198   367 
Repairs and maintenance  116   4   5   20   59 
Insurance and loss reserves  4   7   6      (12)
Fuel, lubes and supplies  27      (172)     112 
Other  3   1      (56)  75 
   298   25   (137)  162   601 
Direct Vessel Profit  $1,020   $1,193   $1,382   $2,025   $2,942 
                
Leased-in equipment (included in operating costs and expenses)  $   $   $(1)  $180   $367 
Time Charter Statistics:               
Overall average rates per day worked  $   $   $   $   $ 
Overall fleet utilization  %  %  %  %  %
Overall fleet available days  105   90   184   170   83 
Out-of-service days for cold-stacked status  91   90   184   170   83 


 
SEACOR MARINE HOLDINGS INC.
DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except for statistics, unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Europe, primarily North Sea               
Operating revenues:               
Time charter  $18,713   $16,065   $17,094   $19,677   $21,052 
Other marine services  680   461   646   578   668 
   19,393   16,526   17,740   20,255   21,720 
Direct operating expenses:               
Personnel  8,671   7,917   8,157   9,827   10,724 
Repairs and maintenance  2,191   1,734   1,955   2,194   2,544 
Drydocking  900   1,279   210   696   1,646 
Insurance and loss reserves  207   219   240   163   248 
Fuel, lubes and supplies  1,006   949   907   957   911 
Other  237   250   235   274   293 
   13,212   12,348   11,704   14,111   16,366 
Direct Vessel Profit  $6,181   $4,178   $6,036   $6,144   $5,354 
                
Leased-in equipment (included in operating costs and expenses)  $   $64   $190   $83   $129 
Time Charter Statistics:               
Average rates per day worked - Standby safety  $8,457   $8,131   $8,284   $8,904   $9,632 
Fleet utilization - Standby safety  80%  80%  81%  78%  77%
Fleet available days - Standby safety  1,820   1,800   1,840   1,989   2,104 
Average rates per day worked - Wind farm utility  $2,124   $2,005   $1,991   $2,083   $2,235 
Fleet utilization - Wind farm utility  95%  69%  73%  89%  79%
Fleet available days - Wind farm utility  3,185   3,150   3,220   3,161   3,094 
Out-of-service days for repairs, maintenance and drydockings  124   173   130   136   211 


 
SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)
(in thousands, unaudited)
 
   Three Months Ended
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
Cash Flows from Operating Activities:               
Regional DVP(1)  $1,531   $4,516   $15,902   $17,497   $17,478 
Operating, leased-in equipment (excluding amortization of deferred gains)  (5,740)  (5,641)  (6,262)  (6,580)  (6,502)
Administrative and general (excluding provisions for bad debts and amortization of restricted stock)  (22,596)  (10,267)  (10,113)  (10,588)  (11,929)
SEACOR Holdings management and guarantee fees  (1,358)  (2,001)  (2,003)  (2,005)  (1,956)
Other, net (excluding non-cash losses)     (1)  (272)  1    
Dividends received from 50% or less owned companies  1,642      406      371 
   (26,521)  (13,394)  (2,342)  (1,675)  (2,538)
Changes in operating assets and liabilities before interest and income taxes  18,635   24,903   (14,377)  (8,383)  (6,369)
Purchases of marketable securities        (14,321)  (286)  (1,658)
Proceeds from sale of marketable securities     51,877          
Cash settlements on derivative transactions, net  (166)  (22)  (285)  (80)  (216)
Interest paid, excluding capitalized interest  (3,626)     (2,280)  1,238   (1,656)
Interest received  275   2,372   (291)  1,832   126 
Income taxes (paid) refunded, net  (157)  (440)  21,208   (204)  2,493 
Net cash provided by (used in) operating activities (GAAP Measure)  (11,560)  65,296   (12,688)  (7,558)  (9,818)
Cash Flows from Investing Activities:               
Purchases of property and equipment, excluding capitalized interest  (17,006)  (9,484)  (16,153)  (35,202)  (23,380)
Capitalized interest paid  (1,654)  (659)  (1,925)  (1,764)  (1,553)
Cash settlements on derivative transactions, net     (324)  (342)  (31)   
Proceeds from disposition of property and equipment  1,252   8,297   37,800   980   2,901 
Construction reserve funds (deposits) withdrawals, net  15,678   (5,268)  (16,310)  6   76,683 
Net investing activities in property and equipment  (1,730)  (7,438)  3,070   (36,011)  54,651 
Net investing activities in 50% or less owned companies  (1,733)  4,956   (8,661)  (2,008)  (1,891)
Net investing activities in third party notes receivable        (380)     50 
Net increase in restricted cash  (13)  (349)  (67)  (1,120)   
Cash assumed on consolidation of 50% or less owned companies     1,943          
Business acquisitions, net of cash acquired  (9,751)            
Net cash provided by (used in) investing activities (GAAP Measure)  (13,227)  (888)  (6,038)  (39,139)  52,810 
Cash Flows from Financing Activities:               
Payments on long-term debt  (2,800)  (1,173)  (2,027)  (487)  (22,498)
Proceeds from issuance of debt, net of issue costs  (173)  3,396   6,564   13,920   22,463 
Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings  (2,656)            
Purchase of subsidiary shares from noncontrolling interests  (3,693)            
Net cash provided by (used in) financing activities (GAAP Measure)  (9,322)  2,223   4,537   13,433   (35)
Effects of Exchange Rate Changes on Cash and Cash Equivalents  858   269   (979)  (385)  (829)
Net Increase (Decrease) in Cash and Cash Equivalents  (33,251)  66,900   (15,168)  (33,649)  42,128 
Cash and Cash Equivalents, Beginning of Year  184,209   117,309   132,477   166,126   123,998 
Cash and Cash Equivalents, End of Year  $150,958   $184,209   $117,309   $132,477   $166,126 

______________________

(1) Direct vessel profit  (defined as operating revenues less operating expenses excluding leased-in equipment and as presented in the preceding table, “DVP”) is our measure of segment profitability when applied to individual segments and a non-GAAP measure when applied on a consolidated basis for the combined fleet. We believe that DVP is a critical financial measure to analyze and compare the operating performance of our individual vessels, fleet categories and combined fleet, without regard to financing decisions (depreciation for owned vessels vs. leased-in expense for leased-in vessels). DVP is also useful when comparing our fleet’s performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP.


 
SEACOR MARINE HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
 
   Jun. 30,
2017
  Mar. 31,
2017
  Dec. 31,
2016
  Sep. 30,
2016
  Jun. 30,
2016
ASSETS               
Current Assets:               
Cash and cash equivalents  $150,958   $184,209   $117,309   $132,477   $166,126 
Restricted cash  1,824   1,811   1,462   1,120    
Marketable securities  688   785   40,139   22,894   22,221 
Receivables:               
Trade, net of allowance for doubtful accounts  43,475   48,044   44,830   62,326   61,533 
Due from SEACOR Holdings        19,102       
Other  11,957   11,701   21,316   18,864   13,701 
Inventories  3,376   3,421   3,058   3,165   3,219 
Prepaid expenses and other  3,719   3,068   3,349   2,460   3,141 
Total current assets  215,997   253,039   250,565   243,306   269,941 
Property and Equipment:               
Historical cost  1,155,155   1,089,176   958,759   1,058,048   1,098,914 
Accumulated depreciation  (543,822)  (534,522)  (540,619)  (552,018)  (556,909)
   611,333   554,654   418,140   506,030   542,005 
Construction in progress  90,335   83,710   123,801   122,633   101,914 
Net property and equipment  701,668   638,364   541,941   628,663   643,919 
Investments, at Equity, and Advances to 50% or Less Owned Companies  100,719   114,767   138,311   133,011   130,034 
Construction Reserve Funds  67,799   83,477   78,209   61,899   61,905 
Other Assets  6,072   6,176   6,093   20,048   20,081 
   $1,092,255   $1,095,823   $1,015,119   $1,086,927   $1,125,880 
                
LIABILITIES AND EQUITY               
Current Liabilities:               
Current portion of long-term debt  $81,593   $26,600   $20,400   $20,351   $20,351 
Accounts payable and accrued expenses  23,436   26,399   25,969   27,029   26,187 
Due to SEACOR Holdings  3,519   1,827      2,497   2,838 
Other current liabilities  47,014   46,055   34,647   39,233   44,707 
Total current liabilities  155,562   100,881   81,016   89,110   94,083 
Long-Term Debt  233,904   274,408   217,805   209,724   194,115 
Conversion Option Liability on 3.75% Convertible Senior Notes  27,109             
Deferred Income Taxes  117,332   121,028   124,945   131,225   148,307 
Deferred Gains and Other Liabilities  39,324   38,820   41,198   44,374   48,368 
Total liabilities  573,231   535,137   464,964   474,433   484,873 
Equity:               
SEACOR Marine Holdings Inc. stockholders’ equity:               
Preferred stock               
Common stock  177   177   177   177   177 
Additional paid-in capital  302,678   306,359   306,359   306,359   306,359 
Retained earnings  208,025   242,017   249,412   310,987   338,920 
Accumulated other comprehensive loss, net of tax  (9,690)  (10,679)  (11,337)  (11,024)  (10,668)
   501,190   537,874   544,611   606,499   634,788 
Noncontrolling interests in subsidiaries  17,834   22,812   5,544   5,995   6,219 
Total equity  519,024   560,686   550,155   612,494   641,007 
   $1,092,255   $1,095,823   $1,015,119   $1,086,927   $1,125,880 


 
SEACOR MARINE HOLDINGS INC.
FLEET COUNTS
(unaudited)
 
   Jun. 30,
2017(1)
  Mar. 31,
2017(1)
  Dec. 31,
2016(2)
  Sep. 30,
2016
  Jun. 30,
2016
                
Anchor handling towing supply  25   25   25   27   27 
Fast support  49   51   48   50   39 
Supply  26   28   28   31   33 
Standby safety  21   21   21   21   23 
Specialty  6   6   6   7   7 
Liftboats  15   15   15   15   15 
Wind farm utility  40   40   40   40   39 
   182   186   183   191   183 

______________________

(1) Excludes six offshore support vessels retired and removed from service.
(2) Excludes eight offshore support vessels retired and removed from service.


 
SEACOR MARINE HOLDINGS INC.
EXPECTED FLEET DELIVERIES
AS OF JUNE 30, 2017
(unaudited)
 2017  2018  2019  2020   
    Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2  Total
                                         
Fast support   2               1      1      1      1   6 
Supply(1)         1      1      1                  3 
Wind farm utility      1                                 1 

______________________

(1) Includes one vessel that may be assumed by a third party at their option.

Read source: http://globenewswire.com/news-release/2017/08/10/1083535/0/en/SEACOR-Marine-Announces-Results-for-Its-Second-Quarter-and-Six-Months-Ended-June-30-2017.html?f=22&fvtc=5&fvtv=32646628

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