SEACOR Marine Announces Second Quarter 2019 Results
August 7, 2019 - 4:54 PM EDT
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SEACOR Marine Announces Second Quarter 2019 Results
HOUSTON, Aug. 07, 2019 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced results for its second quarter ended June 30, 2019.
Second quarter highlights include:
A 6% increase in total operating revenues as compared with the second quarter of 2018, primarily due to a 10% increase in utilization. The improved utilization reflects a 7% increase in on hire days despite an 8% decrease in the number of available days as a result of asset sales during the last twelve months, compared with the second quarter of 2018 Operating loss decreased by $4.5 million to $16.5 million compared with $21.0 million in the second quarter of 2018.
Consolidated direct vessel profit (“DVP”)(1) for the second quarter of 2019 increased by $6.1 million, or 41%, to $20.8 million from $14.7 million in the second quarter of 2018. Primary drivers of the increase were current quarter increases in revenues, along with a decrease in labor costs compared to the second quarter of 2018 due to a $1.2 million foreign pension adjustment in 2018, $1.0 million reduction in drydockings and a $1.7 million reduction in other major repairs.
Wind energy support revenues for the second quarter of 2019 increased by $3.3 million to $9.8 million from $6.5 million in the second quarter of 2018, a 52% increase, and DVP for this activity increased by $2.0 million to $4.7 million from $2.7 million in the second quarter of 2018, a 76% increase. This growth included both organic improvement in utilization and average dayrates for our crew transfer vessel (“CTV”) fleet and the commencement of a multi-year contract in Europe for one liftboat.
Start-up expenses incurred by both our Brazilian focused joint venture and our Chinese new construction platform supply vessel (“PSV”) joint venture, resulted in $5.6 million in losses from 50% or less owned companies. These joint ventures incurred drydocking and/or mobilization expenses for a total of eight vessels, all of which are expected to begin work and contribute positively to the Company’s results in the third quarter.
Following the end of the quarter, the Company initiated cost reduction initiatives aimed at better aligning its operating expenses with its view of current and prospective market conditions. Cost reduction measures include a reduction of workforce, reorganization of the management structure, and closure and/or consolidation of certain facilities in the U.S. Gulf of Mexico, Middle East, and Europe. The Company expects that upon completion of these initiatives, it will realize annualized recurring administrative and general savings of at least $8.0 million, representing approximately 17% of the Company’s total administrative and general expense over the last twelve months. The Company anticipates that the initiatives will impact all of its reportable segments and expects the bulk of the initiatives to be completed by the second quarter of 2020. These initiatives will result in a one-time restructuring charge in the third quarter of 2019.
Chief Executive Officer John Gellert commented on SEACOR Marine's second quarter results:
“Our fleet continued to experience an upward trend in utilization and dayrates, reflecting consistent improvement for assets since the offshore cycle trough in the first quarter of 2017. Activity levels in the U.S. Gulf of Mexico remain tepid as customer demand is highly sensitive to oil and gas prices. Tendering activity, especially in international markets served by our asset portfolio, points to a continuing recovery. Unfortunately, the pace of the recovery is slower than we had hoped, leading us to implement our aggressive cost-cutting initiative.
“Our investments in wind energy support are paying off and continue to develop attractive growth opportunities. Notable highlights from the second quarter were the commencement of a 30-month contract in Europe for our largest and most capable liftboat, increased activity of our CTVs in Europe, and new tendering activity in the U.S. for Jones Act-compliant assets in anticipation of significant offshore windfarm installations off the East Coast.
“We are focused on returning to profit and generating cash, while remaining vigilant in positioning ourselves to take advantage of opportunities in any market conditions. We have proactively reassessed our cost structure and regional footprint and initiated efforts to optimize both. I am confident that these efforts, and our continued emphasis on core assets, regions and services with the highest potential for improved margins, allow us to chart our own path to profitability without depending on a full market recovery in oil and gas services.”
For the second quarter of 2019, net loss attributable to SEACOR Marine was $28.4 million ($1.21 per basic and diluted share), and operating loss was $16.5 million. Net loss attributable to SEACOR Marine for the second quarter of 2018 was $25.0 million ($1.19 per basic and diluted share) and operating loss was $21.0 million.
___________________
(1)
Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability when applied to reportable segments and a non-GAAP measure when applied to individual vessels, fleet categories or the combined fleet. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its individual vessels, fleet categories, regions 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 the Company’s fleet 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 ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 8 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.
SEACOR Marine provides global marine and support transportation services to offshore oil and natural gas and windfarm facilities worldwide. SEACOR Marine and its joint ventures operate 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; provide 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, 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. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. 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, many of which are beyond the Company’s control. 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. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. 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.
Please visit SEACOR Marine’s website at www.seacormarine.com for additional information. For all other requests, contact Connie Morinello at (346) 980-1700 or InvestorRelations@seacormarine.com
SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS (in thousands, except share data)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Operating Revenues
$
64,345
$
60,701
$
120,594
$
112,422
Costs and Expenses:
Operating
43,525
46,001
87,802
84,349
Administrative and general
11,639
15,041
23,639
27,415
Lease expense
4,317
3,310
8,465
6,568
Depreciation and amortization
17,494
18,406
34,687
37,918
76,975
82,758
154,593
156,250
(Losses) Gains on Asset Dispositions and Impairments, Net
(3,848
)
1,055
(3,489
)
(1,588
)
Operating Loss
(16,478
)
(21,002
)
(37,488
)
(45,416
)
Other Income (Expense):
Interest income
222
352
579
568
Interest expense
(7,691
)
(6,489
)
(15,426
)
(12,622
)
SEACOR Holdings guarantee fees
(32
)
(7
)
(61
)
(19
)
Derivative losses, net
(1,398
)
(2,668
)
(2,323
)
(14,184
)
Foreign currency gains, net
(929
)
(818
)
(294
)
(679
)
(9,828
)
(9,630
)
(17,525
)
(26,936
)
Loss Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies
(26,306
)
(30,632
)
(55,013
)
(72,352
)
Income Tax Benefit
(3,048
)
(4,724
)
(6,879
)
(14,548
)
Loss Before Equity in Earnings of 50% or Less Owned Companies
(23,258
)
(25,908
)
(48,134
)
(57,804
)
Equity in Losses of 50% or Less Owned Companies
(7,006
)
(721
)
(10,403
)
(513
)
Net Loss
(30,264
)
(26,629
)
(58,537
)
(58,317
)
Net Loss attributable to Noncontrolling Interests in Subsidiaries
(1,875
)
(1,605
)
(4,599
)
(4,460
)
Net Loss attributable to SEACOR Marine Holdings Inc.
$
(28,389
)
$
(25,024
)
(53,938
)
$
(53,857
)
Basic and Diluted Loss Per Common Share and Warrants of SEACOR Marine Holdings Inc.
$
(1.21
)
$
(1.19
)
$
(2.32
)
$
(2.79
)
Weighted Average Common Shares and Warrants Outstanding:
Basic and Diluted
23,382,272
21,035,214
23,237,012
$
19,312,923
SEACOR MARINE HOLDINGS INC. UNAUDITED CONSOLIDATED RESULTS OF OPERATIONS (in thousands, except share data)
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Time Charter Statistics:
Average Rates Per Day Worked (excluding crew transfer)
$
9,913
$
9,742
$
9,686
$
9,425
Average Rates Per Day
$
7,122
$
7,324
$
7,237
$
7,174
Fleet Utilization (excluding crew transfer)
64
%
58
%
63
%
54
%
Fleet Utilization
72
%
62
%
66
%
58
%
Fleet Available Days (excluding crew transfer)
8,038
9,071
16,153
18,342
Fleet Available Days
11,537
12,528
23,072
25,129
Operating Revenues:
Time charter
$
58,773
91
%
$
56,826
94
%
$
110,900
92
%
$
103,968
93
%
Bareboat charter
1,389
2
%
1,156
2
%
2,532
2
%
2,299
2
%
Other marine services
4,183
7
%
2,719
4
%
7,162
6
%
6,155
5
%
$
64,345
100
%
60,701
100
%
$
120,594
100
%
112,422
100
%
Costs and Expenses:
Operating:
Personnel
23,961
37
%
24,733
41
%
46,717
39
%
46,409
41
%
Repairs and maintenance
8,676
14
%
9,070
15
%
17,682
15
%
16,143
14
%
Drydocking
2,074
3
%
3,112
5
%
4,953
4
%
5,369
5
%
Insurance and loss reserves
1,892
3
%
1,934
3
%
3,366
3
%
3,124
3
%
Fuel, lubes and supplies
3,892
6
%
4,122
7
%
7,645
6
%
7,667
7
%
Other
3,030
5
%
3,009
5
%
7,439
6
%
5,616
5
%
43,525
68
%
45,980
76
%
87,802
73
%
84,328
75
%
Administrative and general
11,639
18
%
15,041
25
%
23,639
19
%
27,415
24
%
Depreciation and amortization
17,494
27
%
18,406
30
%
34,687
29
%
37,918
34
%
Lease expense - operating
4,317
7
%
3,331
6
%
8,465
7
%
6,589
6
%
76,975
120
%
82,758
137
%
154,593
128
%
156,250
139
%
Gains (Losses) on Asset Dispositions and Impairments, Net
(3,848
)
(6
)%
1,055
2
%
(3,489
)
(3
)%
(1,588
)
(1
)%
Operating Loss
(16,478
)
(26
)%
(21,002
)
(35
)%
(37,488
)
(31
)%
(45,416
)
(40
)%
SEACOR MARINE HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF LOSS (in thousands, except statistics and per share data)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Time Charter Statistics:
Average Rates Per Day Worked (excluding crew transfer)
$
9,913
$
9,451
$
9,852
$
10,186
$
9,742
Average Rates Per Day
$
7,122
$
7,371
$
7,447
$
7,323
$
7,324
Fleet Utilization (excluding crew transfer)
64
%
62
%
61
%
60
%
58
%
Fleet Utilization
72
%
61
%
63
%
68
%
62
%
Fleet Available Days (excluding crew transfer)
8,038
8,116
8,312
9,119
9,071
Fleet Available Days
11,537
11,536
11,808
12,617
12,528
Operating Revenues:
Time charter
$
58,773
$
52,127
$
55,382
$
62,902
$
56,826
Bareboat charter
1,389
1,143
1,168
1,168
1,156
Other marine services
4,183
2,979
14,382
6,185
2,719
$
64,345
$
56,249
$
70,932
70,255
$
60,701
Costs and Expenses:
Operating:
Personnel
23,961
22,756
23,598
25,021
24,733
Repairs and maintenance
8,676
9,006
7,928
9,208
9,070
Drydocking
2,074
2,879
1,396
4,822
3,112
Insurance and loss reserves
1,892
1,474
2,093
1,857
1,934
Fuel, lubes and supplies
3,892
3,753
4,618
4,690
4,122
Other
3,030
4,409
2,532
3,000
3,009
43,525
44,277
42,165
48,598
45,980
Direct Vessel Profit
20,820
11,972
28,767
21,657
14,721
Other Costs and Expenses:
Lease expense
4,317
4,148
3,430
3,292
3,331
Administrative and general
11,639
12,000
11,795
11,767
15,041
Depreciation and amortization
17,494
17,193
16,986
17,342
18,406
33,450
33,341
32,211
32,401
36,778
Gains (Losses) on Asset Dispositions and Impairments, Net
(3,848
)
359
(7,745
)
586
1,055
Operating Loss
(16,478
)
(21,010
)
(11,189
)
(10,158
)
(21,002
)
Other Income (Expense):
Interest income
222
357
357
309
352
Interest expense
(7,691
)
(7,735
)
(7,486
)
(7,761
)
(6,489
)
SEACOR Holdings guarantee fees
(32
)
(29
)
(5
)
(5
)
(7
)
Debt extinguishment loss
—
—
—
(638
)
—
Derivative losses, net
(1,398
)
(925
)
12,651
4,387
(2,668
)
Foreign currency gains, net
(929
)
635
(466
)
(302
)
(818
)
Other, net
—
—
(4
)
678
—
(9,828
)
(7,697
)
5,047
(3,332
)
(9,630
)
Loss Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies
(26,306
)
(28,707
)
(6,142
)
(13,490
)
(30,632
)
Income Tax (Benefit) Expense
(3,048
)
(3,831
)
(48
)
1,249
(4,724
)
Loss Before Equity in Earnings of 50% or Less Owned Companies
(23,258
)
(24,876
)
(6,094
)
(14,739
)
(25,908
)
Equity in (Losses) Earnings of 50% or Less Owned Companies, Net of Tax
(7,006
)
(3,397
)
(1,875
)
(1,027
)
(721
)
Net Loss
(30,264
)
(28,273
)
(7,969
)
(15,766
)
(26,629
)
Net Loss attributable to Noncontrolling Interests in Subsidiaries
(1,875
)
(2,724
)
(175
)
191
(1,605
)
Net Loss attributable to SEACOR Marine Holdings Inc.
$
(28,389
)
$
(25,549
)
$
(7,794
)
$
(15,957
)
$
(25,024
)
Basic and Diluted Loss Per Common Share and Warrants of SEACOR Marine Holdings Inc.
$
(1.21
)
$
(1.11
)
$
(0.35
)
$
(0.71
)
$
(1.19
)
Weighted Average Common Shares and Warrants Outstanding:
Basic and Diluted
23,382
23,090
22,514
22,513
21,035
Common Shares and Warrants Outstanding at Period End
23,618
23,222
22,711
22,709
22,709
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (in thousands, except share data)
United States (primarily Gulf of Mexico)
Africa (primarily West Africa)
Middle East and Asia
Latin America
Europe (primarily North Sea)
Total
For the Three Months Ended June 30, 2019
Time Charter Statistics:
Average Rates Per Day
$
14,058
$
9,365
$
8,182
$
8,074
$
4,686
$
7,122
Fleet Utilization
34
%
81
%
79
%
63
%
86
%
72
%
Fleet Available Days
2,669
1,365
2,026
400
5,077
11,537
Operating Revenues:
Time charter
$
12,628
$
10,400
$
13,175
$
2,046
$
20,524
$
58,773
Bareboat charter
233
—
—
1,156
—
1,389
Other marine services
1,320
753
349
273
1,488
4,183
14,181
11,153
13,524
3,475
22,012
64,345
Direct Costs and Expenses:
Operating:
Personnel
5,203
3,428
4,292
976
10,062
23,961
Repairs and maintenance
2,515
952
2,629
481
2,099
8,676
Drydocking
1,801
(48
)
275
(32
)
78
2,074
Insurance and loss reserves
841
239
381
66
365
1,892
Fuel, lubes and supplies
1,107
939
725
314
807
3,892
Other
113
773
793
560
791
3,030
11,580
6,283
9,095
2,365
14,202
43,525
Direct Vessel Profit
$
2,601
$
4,870
$
4,429
$
1,110
$
7,810
20,820
Other Costs and Expenses:
Lease expense
$
2,942
$
787
$
42
$
—
$
546
4,317
Administrative and general
11,639
Depreciation and amortization
5,341
2,759
4,274
1,659
3,461
17,494
33,450
Loss on Asset Dispositions and Impairments
(3,848
)
Operating Loss
$
(16,478
)
United States (primarily Gulf of Mexico)
Africa (primarily West Africa)
Middle East and Asia
Latin America
Europe (primarily North Sea)
Total
For the Six Months Ended June 30, 2019
Time Charter Statistics:
Average Rates Per Day
$
12,472
$
9,414
$
8,280
$
10,974
$
4,743
$
7,237
Fleet Utilization
31
%
84
%
76
%
67
%
77
%
66
%
Fleet Available Days
5,367
2,678
4,087
941
10,000
23,073
Operating Revenues:
Time charter
$
20,633
$
21,173
$
25,674
$
6,968
$
36,452
$
110,900
Bareboat charter
233
—
—
2,299
—
2,532
Other marine services
2,452
116
577
908
3,109
7,162
23,318
21,289
26,251
10,175
39,561
120,594
Direct Costs and Expenses:
Operating:
Personnel
9,706
7,295
8,546
2,532
18,638
46,717
Repairs and maintenance
5,293
2,136
4,822
816
4,615
17,682
Drydocking
3,795
290
434
47
387
4,953
Insurance and loss reserves
1,433
452
708
201
572
3,366
Fuel, lubes and supplies
1,790
1,693
1,434
742
1,986
7,645
Other
203
2,879
1,893
1,081
1,383
7,439
22,220
14,745
17,837
5,419
27,581
87,802
Direct Vessel Profit
$
1,098
$
6,544
$
8,414
$
4,756
$
11,980
32,792
Other Costs and Expenses:
Lease expense
$
5,853
$
1,572
$
88
$
1
$
951
8,465
Administrative and general
23,639
Depreciation and amortization
10,839
5,115
8,523
3,595
6,615
34,687
66,791
Loss on Asset Dispositions and Impairments
(3,489
)
Operating Loss
$
(37,488
)
As of June 30, 2019
Property and Equipment:
Historical cost
$
364,501
$
220,855
$
288,677
$
108,068
$
240,719
$
1,222,820
Accumulated depreciation
(189,602
)
(62,061
)
(74,815
)
(49,393
)
(149,685
)
(525,556
)
$
174,899
$
158,794
$
213,862
$
58,675
$
91,034
$
697,264
Total Assets (1)
$
312,465
$
171,084
$
252,926
$
123,513
$
133,437
$
993,425
(1) Total assets by region does not include corporate assets, which are $83,271 as of June 30, 2019
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked
$
14,058
$
10,588
$
12,656
$
12,476
$
10,503
Fleet utilization
34
%
28
%
29
%
30
%
23
%
Fleet available days
2,669
2,698
2,983
3,433
3,710
Out-of-service days for repairs, maintenance and drydockings
325
232
143
147
292
Out-of-service days for cold-stacked status
1,322
1,579
1,761
2,101
2,435
Operating Revenues:
Time charter
$
12,628
$
8,005
$
10,968
$
12,800
$
9,052
Bareboat charter
233
—
—
—
—
Other marine services
1,320
1,132
8,709
2,722
1,676
14,181
9,137
19,677
15,522
10,728
Direct Costs and Expenses:
Operating:
Personnel
5,203
4,503
5,227
4,853
4,636
Repairs and maintenance
2,515
2,778
1,128
1,801
1,529
Drydocking
1,801
1,994
147
375
910
Insurance and loss reserves
841
592
974
612
902
Fuel, lubes and supplies
1,107
683
1,055
1,120
900
Other
113
90
185
154
29
11,580
10,640
8,716
8,915
8,906
Direct Vessel Profit (Loss)
$
2,601
$
(1,503
)
$
10,961
$
6,607
$
1,822
Other Costs and Expenses:
Lease expense
$
2,942
$
2,911
$
2,053
$
2,078
$
2,065
Depreciation and amortization
5,341
5,498
5,550
5,227
5,915
Africa, primarily West Africa
Time Charter Statistics:
Average rates per day worked
$
9,365
$
9,461
$
9,411
$
9,315
$
9,509
Fleet utilization
81
%
87
%
87
%
82
%
88
%
Fleet available days
1,365
1,313
1,310
1,475
1,331
Out-of-service days for repairs, maintenance and drydockings
54
58
—
92
46
Operating Revenues:
Time charter
$
10,400
$
10,773
$
10,730
$
11,201
$
11,122
Other marine services
753
(637
)
4,247
1,777
350
11,153
10,136
14,977
12,978
11,472
Direct Costs and Expenses:
Operating:
Personnel
3,428
3,867
3,665
4,486
4,314
Repairs and maintenance
952
1,184
873
2,438
1,663
Drydocking
(48
)
338
(28
)
1,201
910
Insurance and loss reserves
239
213
307
323
248
Fuel, lubes and supplies
939
754
1,176
1,081
900
Other
773
2,106
772
1,103
1,402
6,283
8,462
6,765
10,632
9,437
Direct Vessel Profit
$
4,870
$
1,674
$
8,212
$
2,346
$
2,035
Other Costs and Expenses:
Lease expense
$
787
$
785
$
1,059
$
1,061
$
1,092
Depreciation and amortization
2,759
2,356
2,341
2,381
2,924
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued) (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Middle East and Asia
Time Charter Statistics:
Average rates per day worked
$
8,182
$
8,386
$
8,856
$
8,156
$
8,226
Fleet utilization
79
%
72
%
70
%
76
%
82
%
Fleet available days
2,026
2,061
2,009
2,024
2,005
Out-of-service days for repairs, maintenance and drydockings
73
95
178
76
4
Out-of-service days for cold-stacked status
115
90
92
92
91
Operating Revenues:
Time charter
$
13,175
$
12,499
$
12,517
$
12,590
$
13,591
Other marine services
349
228
118
(83
)
(792
)
13,524
12,727
12,635
12,507
12,799
Direct Costs and Expenses:
Operating:
Personnel
4,292
4,254
4,354
4,361
4,069
Repairs and maintenance
2,629
2,193
3,077
2,091
3,576
Drydocking
275
159
949
352
72
Insurance and loss reserves
381
327
389
385
361
Fuel, lubes and supplies
725
709
1,179
892
922
Other
793
1,100
984
952
836
9,095
8,742
10,932
9,033
9,836
Direct Vessel Profit
$
4,429
$
3,985
$
1,703
$
3,474
$
2,963
Other Costs and Expenses:
Lease expense
$
42
$
46
$
49
$
57
$
59
Depreciation and amortization
4,274
4,249
4,154
4,207
4,311
Latin America
Time Charter Statistics:
Average rates per day worked
$
8,074
$
12,900
$
11,866
$
17,604
$
19,127
Fleet utilization
63
%
71
%
72
%
80
%
57
%
Fleet available days
400
541
460
531
416
Out-of-service days for repairs, maintenance and drydockings
3
5
—
—
—
Out-of-service days for cold-stacked status
91
90
92
92
91
Operating Revenues:
Time charter
$
2,046
$
4,922
$
3,934
$
7,479
$
4,556
Bareboat charter
1,156
1,143
1,168
1,168
1,156
Other marine services
273
635
183
416
845
3,475
6,700
5,285
9,063
6,557
Direct Costs and Expenses:
Operating:
Personnel
976
1,556
1,142
1,662
1,219
Repairs and maintenance
481
335
362
312
32
Drydocking
(32
)
79
14
103
11
Insurance and loss reserves
66
135
96
163
169
Fuel, lubes and supplies
314
428
384
427
349
Other
560
521
232
350
488
2,365
3,054
2,230
3,017
2,268
Direct Vessel Profit
$
1,110
$
3,646
$
3,055
$
6,046
$
4,289
Other Costs and Expenses:
Lease expense
$
—
$
1
$
1
$
1
$
2
Depreciation and amortization
1,659
1,936
1,888
2,521
2,280
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued) (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Europe, primarily North Sea
Time Charter Statistics:
Average rates per day worked
4,686
4,819
4,676
4,287
4,823
Fleet utilization
86
%
67
%
73
%
85
%
76
%
Fleet available days
5,077
4,923
5,046
5,154
5,065
Out-of-service days for repairs, maintenance and drydockings
174
124
136
240
77
Out-of-service days for cold-stacked status
91
90
92
61
—
Operating Revenues:
Time charter
$
20,524
$
15,928
$
17,233
$
18,832
$
18,505
Other marine services
1,488
1,621
1,125
1,353
640
22,012
17,549
18,358
20,185
19,145
Direct Costs and Expenses:
Operating:
Personnel
10,062
8,576
9,210
9,659
10,495
Repairs and maintenance
2,099
2,516
2,488
2,566
2,270
Drydocking
78
309
314
2,791
1,209
Insurance and loss reserves
365
207
327
374
254
Fuel, lubes and supplies
807
1,179
824
1,170
1,051
Other
791
592
359
441
254
14,202
13,379
13,522
17,001
15,533
Direct Vessel Profit
$
7,810
$
4,170
$
4,836
$
3,184
$
3,612
Other Costs and Expenses:
Lease expense
$
546
$
405
$
267
$
95
$
113
Depreciation and amortization
3,461
3,154
3,053
3,006
2,976
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Anchor handling towing supply
Time Charter Statistics:
Average rates per day worked
$
7,597
$
8,502
$
8,506
$
9,269
$
13,381
Fleet utilization
49
%
38
%
26
%
28
%
23
%
Fleet available days
910
900
1,012
1,012
866
Out-of-service days for repairs, maintenance and drydockings
31
34
12
100
23
Out-of-service days for cold-stacked status
437
521
644
602
608
Operating Revenues:
Time charter
$
3,360
$
2,875
$
2,248
$
2,592
$
2,712
Other marine services
869
(658
)
2,426
1,244
(91
)
4,229
2,217
4,674
3,836
2,621
Direct Costs and Expenses:
Operating:
Personnel
2,001
1,390
1,279
1,667
1,593
Repairs and maintenance
632
630
386
1,625
1,281
Drydocking
96
75
(70
)
1,168
945
Insurance and loss reserves
266
122
219
282
265
Fuel, lubes and supplies
262
62
467
582
586
Other
411
592
568
530
689
3,668
2,871
2,849
5,854
5,359
Direct Vessel Profit (Loss)
$
561
$
(654
)
$
1,825
$
(2,018
)
$
(2,738
)
Other Costs and Expenses:
Lease expense
$
1,527
$
1,539
$
1,847
$
1,851
$
1,855
Depreciation and amortization
575
575
679
689
532
Fast support
Time Charter Statistics:
Average rates per day worked
$
7,624
$
7,609
$
7,749
$
7,148
$
6,963
Fleet utilization
71
%
68
%
67
%
59
%
62
%
Fleet available days
3,275
3,295
3,187
3,709
3,820
Out-of-service days for repairs, maintenance and drydockings
134
72
151
131
53
Out-of-service days for cold-stacked status
545
622
659
1,037
1,191
Operating Revenues:
Time charter
$
17,709
$
17,083
$
16,453
$
15,678
$
16,488
Bareboat charter
233
—
—
—
—
Other marine services
(179
)
(251
)
(952
)
(834
)
(505
)
17,763
16,832
15,501
14,844
15,983
Direct Costs and Expenses:
Operating:
Personnel
5,796
5,511
5,328
5,826
5,258
Repairs and maintenance
2,682
2,337
2,595
2,641
3,406
Drydocking
136
350
1
432
115
Insurance and loss reserves
385
326
534
407
314
Fuel, lubes and supplies
1,602
1,102
1,368
1,016
1,015
Other
1,713
2,464
1,062
1,718
1,466
12,314
12,090
10,888
12,040
11,574
Direct Vessel Profit
$
5,449
$
4,742
$
4,613
$
2,804
$
4,409
Other Costs and Expenses:
Lease expense
$
352
$
352
$
341
$
342
$
342
Depreciation and amortization
5,929
5,944
5,525
5,780
6,585
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Supply
Time Charter Statistics:
Average rates per day worked
$
6,906
$
7,001
$
7,050
$
7,410
$
7,174
Fleet utilization
53
%
62
%
81
%
82
%
69
%
Fleet available days
486
501
460
565
637
Out-of-service days for repairs, maintenance and drydockings
118
60
27
—
—
Out-of-service days for cold-stacked status
—
—
—
—
19
Operating Revenues:
Time charter
$
1,787
$
2,182
$
2,631
$
3,442
$
3,149
Bareboat charter
1,156
1,143
1,168
1,168
1,156
Other marine services
799
781
619
1,066
39
3,742
4,106
4,418
5,676
4,344
Direct Costs and Expenses:
Operating:
Personnel
1,617
1,678
1,487
1,976
1,999
Repairs and maintenance
1,085
619
403
549
259
Drydocking
82
162
1,023
1,624
585
Insurance and loss reserves
78
105
130
145
134
Fuel, lubes and supplies
98
399
445
391
317
Other
842
1,144
762
254
1,048
3,802
4,107
4,250
4,939
4,342
Direct Vessel (Loss) Profit
$
(60
)
$
(1
)
$
168
$
737
$
2
Other Costs and Expenses:
Lease expense
$
433
$
318
$
178
$
34
$
—
Depreciation and amortization
1,223
1,036
966
1,173
1,394
Emergency Response and Rescue
Time Charter Statistics:
Average rates per day worked
$
8,562
$
8,499
$
8,504
$
8,692
$
9,157
Fleet utilization
87
%
82
%
82
%
77
%
80
%
Fleet available days
1,547
1,620
1,734
1,809
1,746
Out-of-service days for repairs, maintenance and drydockings
15
71
89
117
46
Operating Revenues:
Time charter
$
11,503
$
11,308
$
12,024
$
12,036
$
12,791
Other marine services
30
31
11
50
39
11,533
11,339
12,035
12,086
12,830
Direct Costs and Expenses:
Operating:
Personnel
6,047
6,133
6,774
5,855
8,148
Repairs and maintenance
1,069
1,422
1,601
1,627
1,464
Drydocking
77
309
273
1,156
624
Insurance and loss reserves
129
60
216
234
143
Fuel, lubes and supplies
690
947
657
975
843
Other
143
240
209
351
144
8,155
9,111
9,730
10,198
11,366
Direct Vessel Profit
$
3,378
$
2,228
$
2,305
$
1,888
$
1,464
Other Costs and Expenses:
Depreciation and amortization
$
1,082
$
1,096
$
1,085
$
945
$
681
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Specialty
Time Charter Statistics:
Fleet available days
91
90
92
92
91
Out-of-service days for cold-stacked status
91
90
92
92
91
Operating Revenues:
Other marine services
$
—
$
—
$
337
$
—
$
—
Direct Costs and Expenses:
Operating:
Personnel
23
65
64
64
79
Repairs and maintenance
3
4
12
31
13
Drydocking
—
—
—
—
—
Insurance and loss reserves
20
8
9
41
25
Fuel, lubes and supplies
(24
)
31
33
65
(29
)
Other
77
95
70
67
93
99
203
188
268
181
Direct Vessel (Loss) Profit
$
(99
)
$
(203
)
$
149
$
(268
)
$
(181
)
Other Costs and Expenses:
Depreciation and amortization
127
128
282
282
283
Liftboats
Time Charter Statistics:
Average rates per day worked
$
20,993
$
17,750
$
18,497
$
18,993
$
19,225
Fleet utilization
47
%
46
%
49
%
60
%
43
%
Fleet available days
1,729
1,710
1,827
1,932
1,911
Out-of-service days for repairs, maintenance and drydockings
292
224
132
86
266
Out-of-service days for cold-stacked status
455
526
550
554
708
Operating Revenues:
Time charter
$
16,932
$
13,877
$
16,631
$
22,171
$
15,788
Other marine services
1,481
2,080
1,926
2,922
1,569
18,413
15,957
18,557
25,093
17,357
Direct Costs and Expenses:
Operating:
Personnel
5,360
5,097
5,546
5,621
4,671
Repairs and maintenance
2,189
2,828
1,971
1,827
1,553
Drydocking
1,683
1,983
167
433
842
Insurance and loss reserves
921
884
872
630
889
Fuel, lubes and supplies
1,076
1,005
1,485
1,482
1,153
Other
251
444
667
620
336
11,480
12,241
10,708
10,613
9,444
Direct Vessel Profit
$
6,933
$
3,716
$
7,849
$
14,480
$
7,913
Other Costs and Expenses:
Lease expense
$
1,497
$
1,498
$
638
$
641
$
644
Depreciation and amortization
6,055
6,053
6,098
6,188
6,333
SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Crew transfer
Time Charter Statistics:
Average rates per day worked
$
2,431
$
2,325
$
2,283
$
2,253
$
2,330
Fleet utilization
88
%
60
%
68
%
89
%
73
%
Fleet available days
3,499
3,420
3,496
3,498
3,457
Out-of-service days for repairs, maintenance and drydockings
39
53
47
123
31
Out-of-service days for cold-stacked status
91
90
92
61
—
Operating Revenues:
Time charter
$
7,482
$
4,802
$
5,395
$
6,983
$
5,898
Other marine services
499
322
460
657
563
7,981
5,124
5,855
7,640
6,461
Direct Costs and Expenses:
Operating:
Personnel
2,665
2,309
2,274
2,471
2,295
Repairs and maintenance
933
1,096
814
806
987
Drydocking
—
—
2
9
1
Insurance and loss reserves
93
104
94
130
93
Fuel, lubes and supplies
167
189
145
163
219
Other
113
113
165
104
173
3,971
3,811
3,494
3,683
3,768
Direct Vessel Profit
$
4,010
$
1,313
$
2,361
$
3,957
$
2,693
Other Costs and Expenses:
Lease expense
$
—
$
—
$
—
$
(22
)
$
22
Depreciation and amortization
1,920
2,031
679
689
532
Other Activity
Operating Revenues:
Other marine services
$
684
$
674
$
9,555
$
1,080
$
1,105
684
674
9,555
1,080
1,105
Direct Costs and Expenses:
Operating:
Personnel
452
573
846
1,541
690
Repairs and maintenance
83
70
146
102
107
Insurance and loss reserves
—
(135
)
19
(12
)
71
Fuel, lubes and supplies
21
18
18
16
18
Other
(520
)
(683
)
(971
)
(644
)
(940
)
36
(157
)
58
1,003
(54
)
Direct Vessel Profit
$
648
$
831
$
9,497
$
77
$
1,159
Other Costs and Expenses:
Lease expense
$
508
$
224
$
425
$
446
$
468
Depreciation and amortization
583
330
196
192
218
SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION) (in thousands)
Three Months Ended
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Cash Flows from Operating Activities:
DVP
20,820
11,972
28,767
$
21,657
$
14,721
Operating, leased-in equipment (excluding amortization of deferred gains)
(4,625
)
(5,157
)
(5,439
)
(5,301
)
(5,341
)
Administrative and general (excluding provisions for bad debts and amortization of share awards)
(10,594
)
(11,860
)
(11,869
)
(10,985
)
(13,585
)
SEACOR Holdings management and guarantee fees
(32
)
(29
)
(5
)
(5
)
(7
)
Dividends received from 50% or less owned companies
—
400
400
—
1,324
Other, net (excluding non-cash losses)
—
—
(3
)
249
—
5,569
(4,674
)
11,851
5,615
(2,888
)
Changes in operating assets and liabilities before interest and income taxes
3,090
5,372
(10,638
)
(16,587
)
(14,575
)
Director share awards
894
—
—
—
893
Restricted stock vested
-
(282
)
(5
)
(32
)
(51
)
Cash settlements on derivative transactions, net
275
(75
)
1,420
102
(21
)
Interest paid, excluding capitalized interest (1)
(7,691
)
(4,664
)
(5,929
)
(5,498
)
(5,875
)
Interest received
222
357
357
309
352
Income taxes refunded, net
56
1,999
40
(344
)
(12
)
Net cash provided by (used in) operating activities
2,415
(1,967
)
(2,904
)
(16,435
)
(22,177
)
Cash Flows from Investing Activities:
Purchases of property and equipment
(19,654
)
(20,813
)
(14,217
)
(21,601
)
(5,983
)
Capitalized interest paid
(347
)
(370
)
—
(614
)
(1,008
)
Proceeds from disposition of property and equipment
9,268
552
17,476
1,858
3,244
Net change in construction reserve fund
7,997
(48
)
7,535
2,556
7,209
Net investing activities in property and equipment
(2,736
)
(20,679
)
10,794
(17,801
)
3,462
Investments in and advances to 50% or less owned companies
(718
)
(1,951
)
(3,672
)
1,770
(5,610
)
Net investing activities in third party notes receivable
—
—
17
—
—
Sale of subsidiary to joint venture
—
—
—
8,017
—
Net cash (used in) provided by investing activities
(3,454
)
(22,630
)
7,139
(8,014
)
(2,148
)
Cash Flows from Financing Activities:
Payments on long-term debt
(3,738
)
(4,361
)
(11,352
)
(2,851
)
(6,395
)
Proceeds from issuance of long-term debt, net of issue costs
—
—
(336
)
43,882
—
Purchase of subsidiary shares from noncontrolling interests
—
(3,392
)
—
—
—
Proceeds from exercise of stock options and Warrants
3
108
20
—
813
Issuance of stock
—
—
—
—
54,012
Net cash (used in) provided by financing activities
(3,735
)
(7,645
)
(11,668
)
41,031
48,430
Effects of Exchange Rate Changes on Cash and Cash Equivalents
(309
)
1,484
(233
)
(253
)
(970
)
Net Change in Cash, Cash Equivalents and Restricted Cash
(5,083
)
(30,758
)
(7,666
)
16,329
23,135
Cash, Restricted Cash and Cash Equivalents, Beginning of Period
66,095
96,853
104,519
88,190
65,055
Cash, Restricted Cash and Cash Equivalents, End of Period
$
61,012
$
66,095
$
96,853
$
104,519
$
88,190
SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
June 30, 2019
March 31, 2019
December 31, 2018
September 30, 2018
June 30, 2018
ASSETS
Current Assets:
Cash and cash equivalents
$
58,772
$
63,855
$
95,195
$
102,864
$
86,239
Restricted cash
2,240
2,240
1,657
1,655
1,951
Receivables:
Trade, net of allowance for doubtful accounts
69,117
67,900
64,125
75,349
57,658
Other
10,410
9,078
12,082
16,552
16,039
Inventories
2,995
4,139
3,443
3,646
3,666
Prepaid expenses and other
4,123
4,597
2,530
2,692
4,090
Total current assets
147,657
151,809
179,032
202,758
169,643
Property and Equipment:
Historical cost
1,222,820
1,294,945
1,242,733
1,279,000
1,287,855
Accumulated depreciation
(525,556
)
(579,441
)
(561,272
)
(568,752
)
(564,477
)
697,264
715,504
681,461
710,248
723,378
Construction in progress
68,228
63,301
88,918
82,953
82,274
Net property and equipment
765,492
778,805
770,379
793,201
805,652
Right-of-Use Asset - Operating Leases
27,390
30,503
—
—
—
Investments, at Equity, and Advances to 50% or Less Owned Companies
112,418
119,520
121,773
120,340
115,424
Construction Reserve Funds
20,112
28,109
28,061
35,596
38,152
Other Assets
3,627
3,603
3,690
3,582
3,667
$
1,076,696
$
1,112,349
$
1,102,935
$
1,155,477
$
1,132,538
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities
$
16,552
$
17,918
—
—
—
Current portion of long-term debt
20,651
17,426
16,812
17,426
22,858
Accounts payable and accrued expenses
33,909
27,263
19,370
20,480
23,774
Due to SEACOR Holdings
74
535
452
463
746
Other current liabilities
48,593
47,567
46,983
63,772
56,469
Total current liabilities
119,779
110,709
83,617
102,141
103,847
Long-Term Operating Lease Liabilities
16,775
19,851
—
—
—
Long-Term Debt
379,075
384,344
387,854
397,738
348,912
Conversion Option Liability on Convertible Senior Notes
7,599
6,201
5,276
17,928
21,886
Deferred Income Taxes
37,063
41,831
44,682
46,120
49,789
Deferred Gains and Other Liabilities
5,165
7,290
26,571
26,662
27,289
Total liabilities
565,456
570,226
548,000
590,589
551,723
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock
218
211
204
204
204
Additional paid-in capital
424,549
422,830
415,372
414,460
413,754
Retained earnings
83,312
111,701
126,834
134,628
150,585
Shares held in treasury
(374
)
(373
)
(91
)
(86
)
(54
)
Accumulated other comprehensive loss, net of tax
(19,156
)
(16,812
)
(16,788
)
(13,945
)
(13,129
)
488,549
517,557
525,531
535,261
551,360
Noncontrolling interests in subsidiaries
22,691
24,566
29,404
29,627
29,455
Total equity
511,240
542,123
554,935
564,888
580,815
$
1,076,696
$
1,112,349
$
1,102,935
$
1,155,477
$
1,132,538
SEACOR MARINE HOLDINGS INC. UNAUDITED FLEET COUNTS
June 30, 2019 (1)
March 31, 2019
December 31, 2018
September 30, 2018
June 30, 2018
AHTS
9
11
12
13
13
FSV
40
42
41
47
49
Supply
41
42
39
29
29
ERRV
18
18
19
20
21
Specialty
6
7
7
4
4
Liftboats
19
19
19
21
21
CTV
44
43
42
42
42
177
182
179
176
179
______________________
(1)
Excludes five owned and one leased-in offshore support vessels that have been retired and removed from service.
SEACOR MARINE HOLDINGS INC. UNAUDITED EXPECTED FLEET DELIVERIES
