FOR IMMEDIATE RELEASE
SEACOR HOLDINGS ANNOUNCES RESULTS FOR THE
THIRD QUARTER ENDED SEPTEMBER 30, 2020
FORT LAUDERDALE, FL, October 29, 2020 (GLOBE NEWSWIRE) — SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the third quarter ended September 30, 2020:
•Net income attributable to stockholders for the quarter ended September 30, 2020 was $3.2 million ($0.16 per diluted share) compared with $6.4 million ($0.32 per diluted share) for the quarter ended September 30, 2019.
•Operating income for the quarter ended September 30, 2020 was $5.6 million compared with $12.5 million for the quarter ended September 30, 2019.
•“Cash Earnings” for the quarter ended September 30, 2020 were $18.0 million compared with $27.7 million for the quarter ended September 30, 2019.
The Company uses the non-GAAP financial measures "Cash Earnings" and OIBDA in this release; a reconciliation to their closest U.S. GAAP measure is included in "Use of non-GAAP Financial Measures" in this release.
Charles Fabrikant, Executive Chairman and Chief Executive Officer, commented on the quarter's results as follows:
"All of our businesses have continued to operate during these challenging times. We recently, and very carefully, reopened several of our office locations. Fulfilling our commitment to, and success in providing our customers uninterrupted, quality service, is only possible due to the dedication and hard work - and flexibility - of our more than 2,000 employees. It is their safety and well-being which remains our top priority.
Several of our businesses started to recover in July from the severe falloff of activity in the second quarter. Harbor towing enjoyed better results early in the third quarter but major storm activity in August and September caused short term reductions in activity. Activity in October, thus far, has been trending positive again.
Demand for freight services into the Bahamas and Turks & Caicos started to pick up in July. SEACOR Island Lines is positioned to perform even better in the fourth quarter as the Bahamian government is expected to reopen its borders on November 1st in time for the seasonal spike in tourist activity.
Additional good news is China increased imports of U.S. agricultural products late in the third quarter pushing barge rates higher. I hope the better margins will be sustained as exports to China and other destinations pick up with the seasonal harvest.
By way of an update, there are several post quarter events to report. SEA-Vista was able to secure a new multiyear time charter for a chemical-suited tanker, adding approximately $45 million of revenue backlog to the almost $200 million we had as of September 30.
Our inland business, SCF, was also successful in finalizing terms to acquire a strategic center gulf fleeting location. This adds approximately 220 fleeting spaces strategically positioned near grain export elevators allowing us to expedite cycle times of our equipment while improving service to our customers. The acquisition is expected to close in early November. Additionally, SCF, supported by three Port Authorities in the St. Louis region, was awarded a $21 million grant for rail expansion, efficiency upgrades, and safety projects at several of our SCF Lewis & Clark terminal locations.
I am pleased that we have been able to make forward progress but mindful that the pandemic is not yet over."
1
The "Operating Discussion" below is a comparison of results for the quarter ended September 30, 2020 with the prior year quarter ended September 30, 2019.
Operating Discussion
Ocean Transportation & Logistics Services - Operating income and OIBDA were $8.4 million and $18.5 million, respectively, in the current year quarter compared with $17.0 million and $26.5 million, respectively.
SEA-Vista's operating results were $4.2 million higher. The improvement was due to lower dry-docking expenses and related out-of-service time, partially offset by lower operating results for one vessel due to the change in contract status from a multiyear time charter to a long-term multiyear bareboat charter.
Operating results for SEACOR Island Lines and Seabulk Towing continue to be negatively impacted by the COVID-19 pandemic. Early in the quarter, demand for freight into the Bahamas and the Turks & Caicos rebounded from the lows in the preceding quarter, although activity remained below pre-pandemic levels. Ship calls into harbor towing's port network were also beginning to recover but were negatively impacted by port closures along the U.S. Gulf Coast as a consequence of hurricane and major storm activity.
Waterman Logistics' operating results were impacted by softer revenues from government cargo voyages and the timing, and non-recurring nature, of certain expenses.
Inland Transportation & Logistics Services - Operating income and OIBDA were $0.8 million and $6.8 million, respectively, in the current year quarter compared with $0.6 million and $6.2 million, respectively.
Barge pool operating results continued to be impacted by idle equipment, as the supply and demand balance was exacerbated by the delayed start to the harvest in the lower Mississippi River region. Fleeting operations suffered from lock maintenance and closures on the Illinois River and less activity in the St. Louis region. Results from the terminal operation improved due to increased activity levels; the prior year quarter was negatively impacted by the lingering effects of flooding in and around the St. Louis harbor.
Witt O’Brien’s - Operating income and OIBDA were $2.5 million and $2.8 million in the current year quarter compared with $2.1 million and $2.3 million, respectively. The improvement was primarily due to reduced administrative and general expenses reflecting a cost reduction plan implemented earlier in the year.
Capital Commitments - The Company’s capital commitments as of September 30, 2020 were $55.3 million and included four U.S.-flag harbor tugs, the Company's interest in two foreign-flag rail ferries, six inland river dry-cargo barges, one inland river towboat, other equipment, and vessel and terminal improvements.
Liquidity and Debt - During the current year quarter, the Company redeemed its outstanding 3.0% Convertible Senior Notes for $34.5 million.
As of September 30, 2020, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities totaled $106.7 million. As of September 30, 2020, total outstanding debt was $248.9 million, and the Company had $225.0 million of borrowing capacity under its credit facilities.
Equity - As of September 30, 2020, the total shares outstanding were 20,372,510.
* * * * *
SEACOR Holdings Inc. (“SEACOR”) is a diversified holding company with interests in domestic and international transportation and logistics, crisis and emergency management, and clean fuel and power solutions. SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.
2
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 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, including risks relating to the COVID-19 pandemic, volatility the pandemic has caused in the capital markets and the effects it has had and could continue to have on the global economy, the potential impact of governmental responses to the pandemic on the Company's business, operations and personnel, financial condition, results of operations, cash flows and liquidity, risks relating to 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, increased government legislation and regulation of the Company’s businesses that could increase the cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, decreased demand for the Company’s services as a result of declines in the global economy or the COVID-19 pandemic, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, interest rate fluctuations, availability of credit, inflation rates, changes in laws, trade barriers, commodity prices and currency exchange fluctuations, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Ocean Transportation & Logistics Services, decreased demand for Ocean Transportation & Logistics Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services 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 Shipping Acts on the amount of foreign ownership of the Company’s Common Stock, operational risks of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland Transportation & Logistics Services’ operations, the ability to realize anticipated benefits from acquisitions and other strategic transactions, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, changes in U.S. and international trade policies and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A. (Risk Factors) of the Company’s Annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission (“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. Given these 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 SEC, 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 SEACOR at (954) 523-2200, e-mail SEACOR at communications@seacorholdings.com or visit SEACOR’s website at www.seacorholdings.com.
3
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data, unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating Revenues | $ | 175,414 | $ | 200,658 | $ | 540,295 | $ | 607,205 | |||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
| Operating | 128,546 | 147,386 | 400,752 | 437,368 | |||||||||||||||||||
| Administrative and general | 24,560 | 24,923 | 76,785 | 78,383 | |||||||||||||||||||
| Depreciation and amortization | 17,306 | 16,975 | 52,620 | 51,120 | |||||||||||||||||||
| 170,412 | 189,284 | 530,157 | 566,871 | ||||||||||||||||||||
Gains on Asset Dispositions, Net | 618 | 1,145 | 9,200 | 2,259 | |||||||||||||||||||
Operating Income | 5,620 | 12,519 | 19,338 | 42,593 | |||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
| Interest income | 1,425 | 2,198 | 4,544 | 5,983 | |||||||||||||||||||
| Interest expense | (3,938) | (4,816) | (12,587) | (14,832) | |||||||||||||||||||
| Debt extinguishment gains (losses), net | (254) | (777) | 1,348 | (2,073) | |||||||||||||||||||
| Marketable security gains (losses), net | 951 | 144 | (567) | 16,496 | |||||||||||||||||||
| Foreign currency losses, net | (203) | (1,877) | (3,042) | (1,663) | |||||||||||||||||||
| Other, net | 2,242 | 505 | 2,992 | (114) | |||||||||||||||||||
| 223 | (4,623) | (7,312) | 3,797 | ||||||||||||||||||||
| Income Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies | 5,843 | 7,896 | 12,026 | 46,390 | |||||||||||||||||||
Income Tax Expense (Benefit) | 1,552 | 1,417 | (9,384) | 7,012 | |||||||||||||||||||
| Income Before Equity in Losses of 50% or Less Owned Companies | 4,291 | 6,479 | 21,410 | 39,378 | |||||||||||||||||||
| Equity in Losses of 50% or Less Owned Companies, Net of Tax | (1,102) | (618) | (8,877) | (3,448) | |||||||||||||||||||
Net Income | 3,189 | 5,861 | 12,533 | 35,930 | |||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interests in Subsidiaries | (1) | (544) | (8) | 7,239 | |||||||||||||||||||
| Net Income Attributable to SEACOR Holdings Inc. | $ | 3,190 | $ | 6,405 | $ | 12,541 | $ | 28,691 | |||||||||||||||
| Basic Earnings Per Common Share of SEACOR Holdings Inc. | $ | 0.16 | $ | 0.33 | $ | 0.63 | $ | 1.54 | |||||||||||||||
| Diluted Earnings Per Common Share of SEACOR Holdings Inc. | $ | 0.16 | $ | 0.32 | $ | 0.63 | $ | 1.48 | |||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
| Basic | 19,995,413 | 19,322,423 | 19,975,635 | 18,618,613 | |||||||||||||||||||
| Diluted | 20,017,551 | 20,738,919 | 19,993,982 | 19,984,302 | |||||||||||||||||||
OIBDA(1) | $ | 22,926 | $ | 29,494 | $ | 71,958 | $ | 93,713 | |||||||||||||||
OIBDA Attributable to SEACOR Holdings Inc.(1) | $ | 22,926 | $ | 28,813 | $ | 71,958 | $ | 77,714 | |||||||||||||||
______________________
1.Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.
4
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except per share data, unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||||||||||||||||||||||||
Operating Revenues | $ | 175,414 | $ | 172,585 | $ | 192,296 | $ | 192,761 | $ | 200,658 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | 128,546 | 126,178 | 146,028 | 146,265 | 147,386 | ||||||||||||||||||||||||
| Administrative and general | 24,560 | 23,204 | 29,021 | 27,134 | 24,923 | ||||||||||||||||||||||||
| Depreciation and amortization | 17,306 | 17,585 | 17,729 | 17,451 | 16,975 | ||||||||||||||||||||||||
| 170,412 | 166,967 | 192,778 | 190,850 | 189,284 | |||||||||||||||||||||||||
Gains on Asset Dispositions, Net | 618 | 8,198 | 384 | 651 | 1,145 | ||||||||||||||||||||||||
Operating Income (Loss) | 5,620 | 13,816 | (98) | 2,562 | 12,519 | ||||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||||||
| Interest income | 1,425 | 1,518 | 1,601 | 1,488 | 2,198 | ||||||||||||||||||||||||
| Interest expense | (3,938) | (4,179) | (4,470) | (4,401) | (4,816) | ||||||||||||||||||||||||
| Debt extinguishment gains (losses), net | (254) | 1,921 | (319) | (171) | (777) | ||||||||||||||||||||||||
| Marketable security gains (losses), net | 951 | (1,414) | (104) | 1,898 | 144 | ||||||||||||||||||||||||
| Foreign currency gains (losses), net | (203) | 1,743 | (4,582) | 1,351 | (1,877) | ||||||||||||||||||||||||
| Other, net | 2,242 | 658 | 92 | (20) | 505 | ||||||||||||||||||||||||
| 223 | 247 | (7,782) | 145 | (4,623) | |||||||||||||||||||||||||
| Income (Loss) Before Income Tax Expense (Benefit) and Equity in Losses of 50% or Less Owned Companies | 5,843 | 14,063 | (7,880) | 2,707 | 7,896 | ||||||||||||||||||||||||
Income Tax Expense (Benefit) | 1,552 | 3,206 | (14,142) | 2,817 | 1,417 | ||||||||||||||||||||||||
| Income (Loss) Before Equity in Losses of 50% or Less Owned Companies | 4,291 | 10,857 | 6,262 | (110) | 6,479 | ||||||||||||||||||||||||
| Equity in Losses of 50% or Less Owned Companies, Net of Tax | (1,102) | (2,982) | (4,793) | (1,802) | (618) | ||||||||||||||||||||||||
Net Income (Loss) | 3,189 | 7,875 | 1,469 | (1,912) | 5,861 | ||||||||||||||||||||||||
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries | (1) | (9) | 2 | 5 | (544) | ||||||||||||||||||||||||
| Net Income (Loss) attributable to SEACOR Holdings Inc. | $ | 3,190 | $ | 7,884 | $ | 1,467 | $ | (1,917) | $ | 6,405 | |||||||||||||||||||
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc. | $ | 0.16 | $ | 0.39 | $ | 0.07 | $ | (0.10) | $ | 0.33 | |||||||||||||||||||
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc. | $ | 0.16 | $ | 0.39 | $ | 0.07 | $ | (0.10) | $ | 0.32 | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||||||||
Basic | 19,995 | 19,981 | 19,950 | 19,933 | 19,322 | ||||||||||||||||||||||||
Diluted | 20,018 | 21,099 | 19,994 | 19,933 | 20,739 | ||||||||||||||||||||||||
| Common Shares Outstanding at Period End | 20,373 | 20,340 | 20,333 | 20,176 | 20,179 | ||||||||||||||||||||||||
OIBDA(1) | $ | 22,926 | $ | 31,401 | $ | 17,631 | $ | 20,013 | $ | 29,494 | |||||||||||||||||||
OIBDA attributable to SEACOR Holdings Inc.(1) | $ | 22,926 | $ | 31,401 | $ | 17,631 | $ | 20,013 | $ | 28,813 | |||||||||||||||||||
______________________
1.Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.
5
SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||||||||||||||||||||||||
Ocean Transportation & Logistics Services | |||||||||||||||||||||||||||||
Operating Revenues | $ | 88,771 | $ | 86,111 | $ | 106,115 | $ | 101,674 | $ | 102,661 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | 59,985 | 57,827 | 77,604 | 72,759 | 66,888 | ||||||||||||||||||||||||
| Administrative and general | 10,436 | 8,780 | 10,744 | 11,190 | 9,404 | ||||||||||||||||||||||||
| Depreciation and amortization | 10,124 | 10,270 | 10,282 | 10,228 | 10,191 | ||||||||||||||||||||||||
| 80,545 | 76,877 | 98,630 | 94,177 | 86,483 | |||||||||||||||||||||||||
Gains on Asset Dispositions, Net | 191 | 113 | 9 | 121 | 804 | ||||||||||||||||||||||||
Operating Income | 8,417 | 9,347 | 7,494 | 7,618 | 16,982 | ||||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | 213 | 83 | (78) | 52 | (104) | ||||||||||||||||||||||||
| Other, net | 5 | (18) | 22 | 6 | 505 | ||||||||||||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 505 | (1,426) | (1,357) | (1,238) | (242) | ||||||||||||||||||||||||
Segment Profit(1) | $ | 9,140 | $ | 7,986 | $ | 6,081 | $ | 6,438 | $ | 17,141 | |||||||||||||||||||
OIBDA(2) | $ | 18,541 | $ | 19,617 | $ | 17,776 | $ | 17,846 | $ | 27,173 | |||||||||||||||||||
OIBDA(2) attributable to stockholders | $ | 18,541 | $ | 19,617 | $ | 17,776 | $ | 17,846 | $ | 26,492 | |||||||||||||||||||
| Dry-docking expenditures for U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses) | $ | 420 | $ | 908 | $ | 7,816 | $ | 8,752 | $ | 4,310 | |||||||||||||||||||
| Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s | 9 | 13 | 38 | 76 | 42 | ||||||||||||||||||||||||
Dry-docking expenditures for all other vessels | $ | 1,155 | $ | 292 | $ | 1,704 | $ | 289 | $ | 1,783 | |||||||||||||||||||
Inland Transportation & Logistics Services | |||||||||||||||||||||||||||||
Operating Revenues | $ | 64,069 | $ | 63,513 | $ | 61,311 | $ | 68,257 | $ | 72,020 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | 54,338 | 53,915 | 50,919 | 57,912 | 62,775 | ||||||||||||||||||||||||
| Administrative and general | 3,321 | 3,292 | 3,488 | 3,324 | 3,327 | ||||||||||||||||||||||||
| Depreciation and amortization | 6,036 | 6,016 | 6,212 | 6,144 | 5,694 | ||||||||||||||||||||||||
| 63,695 | 63,223 | 60,619 | 67,380 | 71,796 | |||||||||||||||||||||||||
Gains on Asset Dispositions, Net | 427 | 8,085 | 315 | 522 | 330 | ||||||||||||||||||||||||
Operating Income | 801 | 8,375 | 1,007 | 1,399 | 554 | ||||||||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | (439) | 1,653 | (4,478) | 1,249 | (1,729) | ||||||||||||||||||||||||
| Other, net | 1,939 | (3) | — | — | — | ||||||||||||||||||||||||
| Equity in Losses of 50% or Less Owned Companies, Net of Tax | (1,141) | (701) | (3,376) | (2,346) | (1,084) | ||||||||||||||||||||||||
Segment Profit (Loss)(1) | $ | 1,160 | $ | 9,324 | $ | (6,847) | $ | 302 | $ | (2,259) | |||||||||||||||||||
OIBDA(2) | $ | 6,837 | $ | 14,391 | $ | 7,219 | $ | 7,543 | $ | 6,248 | |||||||||||||||||||
______________________
1.Includes amounts attributable to both SEACOR and noncontrolling interests.
2.Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.
6
SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||||||||||||||||||||||||
| Witt O’Brien’s | |||||||||||||||||||||||||||||
Operating Revenues | $ | 20,518 | $ | 21,173 | $ | 22,506 | $ | 20,742 | $ | 24,345 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | 12,793 | 13,104 | 15,691 | 14,266 | 16,323 | ||||||||||||||||||||||||
| Administrative and general | 4,913 | 4,961 | 7,679 | 7,008 | 5,718 | ||||||||||||||||||||||||
| Depreciation and amortization | 359 | 356 | 259 | 210 | 210 | ||||||||||||||||||||||||
| 18,065 | 18,421 | 23,629 | 21,484 | 22,251 | |||||||||||||||||||||||||
| Gains on Asset Dispositions | — | — | — | 8 | 10 | ||||||||||||||||||||||||
| Operating Income (Loss) | 2,453 | 2,752 | (1,123) | (734) | 2,104 | ||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | (18) | (9) | 12 | (1) | — | ||||||||||||||||||||||||
| Other, net | — | — | 70 | (457) | (1) | ||||||||||||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | 130 | 256 | (8) | 333 | 764 | ||||||||||||||||||||||||
Segment Profit (Loss) | $ | 2,565 | $ | 2,999 | $ | (1,049) | $ | (859) | $ | 2,867 | |||||||||||||||||||
OIBDA(2) | $ | 2,812 | $ | 3,108 | $ | (864) | $ | (524) | $ | 2,314 | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
Operating Revenues | $ | 2,069 | $ | 1,798 | $ | 2,399 | $ | 2,099 | $ | 1,635 | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | 1,442 | 1,342 | 1,847 | 1,335 | 1,404 | ||||||||||||||||||||||||
| Administrative and general | 706 | 877 | 1,124 | 967 | 846 | ||||||||||||||||||||||||
| Depreciation and amortization | 459 | 615 | 619 | 499 | 501 | ||||||||||||||||||||||||
| 2,607 | 2,834 | 3,590 | 2,801 | 2,751 | |||||||||||||||||||||||||
| Gains on Asset Dispositions | — | — | 60 | — | 34 | ||||||||||||||||||||||||
| Operating Loss | (538) | (1,036) | (1,131) | (702) | (1,082) | ||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||
| Other, net | 1 | — | — | 431 | — | ||||||||||||||||||||||||
| Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax | (596) | (1,111) | (52) | 1,449 | (56) | ||||||||||||||||||||||||
Segment Profit (Loss)(1) | $ | (1,133) | $ | (2,147) | $ | (1,183) | $ | 1,178 | $ | (1,138) | |||||||||||||||||||
| Corporate and Eliminations | |||||||||||||||||||||||||||||
Operating Revenues | $ | (13) | $ | (10) | $ | (35) | $ | (11) | $ | (3) | |||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||||||||
| Operating | (12) | (10) | (33) | (7) | (4) | ||||||||||||||||||||||||
| Administrative and general | 5,184 | 5,294 | 5,986 | 4,645 | 5,628 | ||||||||||||||||||||||||
| Depreciation and amortization | 328 | 328 | 357 | 370 | 379 | ||||||||||||||||||||||||
| 5,500 | 5,612 | 6,310 | 5,008 | 6,003 | |||||||||||||||||||||||||
| Losses on Asset Dispositions | — | — | — | — | (33) | ||||||||||||||||||||||||
| Operating Loss | $ | (5,513) | $ | (5,622) | $ | (6,345) | $ | (5,019) | $ | (6,039) | |||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | $ | 41 | $ | 16 | $ | (38) | $ | 51 | $ | (44) | |||||||||||||||||||
| Other, net | 297 | 679 | — | — | 1 | ||||||||||||||||||||||||
______________________
1.Includes amounts attributable to both SEACOR and noncontrolling interests.
2.Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.
7
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
| Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 98,015 | $ | 128,389 | $ | 76,106 | $ | 77,222 | $ | 76,815 | |||||||||||||||||||
Restricted cash and restricted cash equivalents | 1,119 | 1,119 | 1,224 | 1,222 | 1,221 | ||||||||||||||||||||||||
Marketable securities | 7,597 | 6,418 | 7,832 | 7,936 | 6,038 | ||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||
Trade, net of allowance for doubtful accounts | 196,076 | 179,350 | 192,350 | 194,022 | 199,013 | ||||||||||||||||||||||||
Other | 67,862 | 64,098 | 67,938 | 38,881 | 43,449 | ||||||||||||||||||||||||
Inventories | 3,871 | 3,668 | 4,050 | 5,255 | 5,224 | ||||||||||||||||||||||||
Prepaid expenses and other | 6,364 | 6,705 | 5,387 | 6,971 | 6,130 | ||||||||||||||||||||||||
Total current assets | 380,904 | 389,747 | 354,887 | 331,509 | 337,890 | ||||||||||||||||||||||||
Property and Equipment: | |||||||||||||||||||||||||||||
Historical cost | 1,442,442 | 1,439,245 | 1,441,509 | 1,442,382 | 1,424,907 | ||||||||||||||||||||||||
| Accumulated depreciation | (663,277) | (647,400) | (639,424) | (624,024) | (607,727) | ||||||||||||||||||||||||
| Net property and equipment | 779,165 | 791,845 | 802,085 | 818,358 | 817,180 | ||||||||||||||||||||||||
| Operating Lease Right-of-Use Assets | 124,855 | 131,628 | 136,180 | 144,539 | 153,464 | ||||||||||||||||||||||||
| Investments, at Equity, and Advances to 50% or Less Owned Companies | 152,744 | 152,228 | 151,568 | 157,108 | 154,968 | ||||||||||||||||||||||||
Construction Reserve Funds | — | — | — | — | 3,908 | ||||||||||||||||||||||||
Goodwill | 32,616 | 32,626 | 32,586 | 32,701 | 32,668 | ||||||||||||||||||||||||
Intangible Assets, Net | 21,041 | 21,990 | 22,952 | 20,996 | 21,884 | ||||||||||||||||||||||||
Other Assets | 8,404 | 8,718 | 8,615 | 7,761 | 8,284 | ||||||||||||||||||||||||
| $ | 1,499,729 | $ | 1,528,782 | $ | 1,508,873 | $ | 1,512,972 | $ | 1,530,246 | ||||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||
| Current Liabilities: | |||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 10,845 | $ | 44,819 | $ | 44,495 | $ | 58,854 | $ | 76,426 | |||||||||||||||||||
Current portion of long-term operating lease liabilities | 37,124 | 37,441 | 35,258 | 36,011 | 36,422 | ||||||||||||||||||||||||
Current portion of other long-term financial liabilities | 1,479 | 1,466 | — | — | — | ||||||||||||||||||||||||
Accounts payable and accrued expenses | 58,640 | 46,129 | 43,663 | 57,595 | 54,921 | ||||||||||||||||||||||||
Other current liabilities | 77,429 | 77,901 | 75,225 | 57,501 | 67,603 | ||||||||||||||||||||||||
Total current liabilities | 185,517 | 207,756 | 198,641 | 209,961 | 235,372 | ||||||||||||||||||||||||
Long-Term Debt | 238,005 | 239,698 | 254,272 | 255,612 | 241,408 | ||||||||||||||||||||||||
Long-Term Operating Lease Liabilities | 87,579 | 93,867 | 100,789 | 108,295 | 116,866 | ||||||||||||||||||||||||
| Other Long-Term Financial Liabilities | 31,701 | 32,076 | — | — | — | ||||||||||||||||||||||||
Deferred Income Taxes | 109,664 | 113,586 | 123,054 | 105,661 | 103,489 | ||||||||||||||||||||||||
Deferred Gains and Other Liabilities | 18,910 | 19,320 | 19,103 | 20,929 | 20,463 | ||||||||||||||||||||||||
Total liabilities | 671,376 | 706,303 | 695,859 | 700,458 | 717,598 | ||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
SEACOR Holdings Inc. stockholders’ equity: | |||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | ||||||||||||||||||||||||
Common stock | 410 | 410 | 410 | 408 | 408 | ||||||||||||||||||||||||
Additional paid-in capital | 1,666,218 | 1,664,617 | 1,662,938 | 1,661,002 | 1,659,428 | ||||||||||||||||||||||||
Retained earnings | 529,647 | 526,457 | 518,573 | 517,106 | 519,023 | ||||||||||||||||||||||||
Shares held in treasury, at cost | (1,365,921) | (1,366,787) | (1,366,787) | (1,365,792) | (1,365,594) | ||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax | (2,779) | (2,998) | (2,909) | (998) | (1,400) | ||||||||||||||||||||||||
| 827,575 | 821,699 | 812,225 | 811,726 | 811,865 | |||||||||||||||||||||||||
Noncontrolling interests in subsidiaries | 778 | 780 | 789 | 788 | 783 | ||||||||||||||||||||||||
Total equity | 828,353 | 822,479 | 813,014 | 812,514 | 812,648 | ||||||||||||||||||||||||
| $ | 1,499,729 | $ | 1,528,782 | $ | 1,508,873 | $ | 1,512,972 | $ | 1,530,246 | ||||||||||||||||||||
8
Use of non-GAAP Financial Measures
The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with U.S. GAAP, including OIBDA and Cash Earnings.
The Company defines OIBDA as operating income (loss) plus depreciation and amortization. The Company includes maintenance and repair costs, including major overhauls and regulatory dry-dockings, and gains or losses (or impairments) on asset dispositions in OIBDA. The Company defines Cash Earnings as OIBDA further adjusted to exclude the amortization of non-cash deferred gains and amounts attributable to its minority partner in SEA-Vista as well as the gain or loss associated with marking-to-market securities held for investment, accrued net cash expense associated with interest on debt obligations, and the Company’s estimate of cash taxes. Other companies may calculate OIBDA and Cash Earnings differently than the Company, which may limit their usefulness as comparative measures. In addition, each of these measures does not necessarily represent funds available for discretionary use and are not measures of the Company’s ability to fund its cash needs. OIBDA and Cash Earnings are each financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA and Cash Earnings of other companies when evaluating potential acquisitions. In addition, the Company believes Cash Earnings is meaningful to investors because it assists in evaluating the Company’s results of operations and net cash generated by business activities across previous and subsequent accounting periods and to better understand the long-term performance of the Company. The Company views OIBDA and Cash Earnings as measures of operating performance not liquidity.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.
The following tables reconcile these non-GAAP measures to their most closely comparable U.S. GAAP measures (amounts in thousands, except per share data).
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| U.S. GAAP Measures | |||||||||||||||||||||||
| Net Income Attributable to Stockholders | $ | 3,190 | $ | 6,405 | $ | 12,541 | $ | 28,691 | |||||||||||||||
Diluted Earnings Per Common Share(1) | $ | 0.16 | $ | 0.32 | $ | 0.63 | $ | 1.48 | |||||||||||||||
| Reconciliation of non-GAAP Financial Measures | |||||||||||||||||||||||
| Operating Income (U.S. GAAP) | $ | 5,620 | $ | 12,519 | $ | 19,338 | $ | 42,593 | |||||||||||||||
| (+) Depreciation and amortization | 17,306 | 16,975 | 52,620 | 51,120 | |||||||||||||||||||
OIBDA(2) | 22,926 | 29,494 | 71,958 | 93,713 | |||||||||||||||||||
(–) Amortization of deferred gains(3) | (331) | (330) | (992) | (991) | |||||||||||||||||||
| (–) OIBDA attributable to noncontrolling interests | — | (681) | — | (15,999) | |||||||||||||||||||
(–) Cash interest paid, net(4) | (177) | (900) | (2,983) | (2,675) | |||||||||||||||||||
| (–) Income tax obligation | (5,412) | (6) | (13,178) | (19) | |||||||||||||||||||
| (+/–) Marketable security gains (losses), net | 951 | 144 | (567) | 16,496 | |||||||||||||||||||
Cash Earnings (proxy for cash earned) | $ | 17,957 | $ | 27,721 | $ | 54,238 | $ | 90,525 | |||||||||||||||
______________________
1.Includes diluted earnings per common share of $0.65 for the nine months ended September 30, 2019, related to marking-to-market the Company’s marketable security portfolio.
2.All references to OIBDA in this release are calculated in the same manner.
3.Included in gains on asset dispositions.
4.Amount is net of interest income, excludes capitalized interest, and is net of our partner’s portion of SEA-Vista net interest expense of $0.2 million and $1.2 million for the three and nine months ended September 30, 2019, respectively.
9
SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)
| Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||||||||||||||||||||||||
Ocean Transportation & Logistics Services | |||||||||||||||||||||||||||||
Bulk Transportation Services: | |||||||||||||||||||||||||||||
Petroleum and chemical carriers - U.S.-flag | 9 | 9 | 9 | 9 | 9 | ||||||||||||||||||||||||
Bulk carriers - U.S.-flag | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Port & Infrastructure Services: | |||||||||||||||||||||||||||||
Harbor tugs - U.S.-flag | 24 | 25 | 25 | 24 | 24 | ||||||||||||||||||||||||
Harbor tugs - Foreign-flag | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||
Offshore tug - U.S.-flag | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Ocean liquid tank barges - U.S.-flag | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||||||||
Ocean liquid tank barges - Foreign-flag | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Specialty vessels - Foreign-flag(1) | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Logistics Services: | |||||||||||||||||||||||||||||
PCTC(2) - U.S.-flag | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||
Short-sea container/RORO(3) vessels - Foreign-flag | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||
RORO(3) & deck barges - U.S.-flag | 7 | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||
Rail ferries - Foreign-flag | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
| 73 | 74 | 74 | 73 | 73 | |||||||||||||||||||||||||
Inland Transportation & Logistics Services | |||||||||||||||||||||||||||||
| Bulk Transportation Services: | |||||||||||||||||||||||||||||
| Dry-cargo barges | 1,322 | 1,341 | 1,372 | 1,372 | 1,375 | ||||||||||||||||||||||||
Liquid tank barges | 20 | 20 | 20 | 20 | 20 | ||||||||||||||||||||||||
Specialty barges(4) | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||||||||
Towboats: | |||||||||||||||||||||||||||||
4,000 hp - 6,600 hp | 19 | 19 | 19 | 19 | 18 | ||||||||||||||||||||||||
3,300 hp - 3,900 hp | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||
Less than 3,300 hp | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Port & Infrastructure Services: | |||||||||||||||||||||||||||||
Harbor boats: | |||||||||||||||||||||||||||||
1,100 hp - 2,000 hp | 18 | 18 | 18 | 18 | 18 | ||||||||||||||||||||||||
Less than 1,100 hp | 6 | 6 | 6 | 6 | 6 | ||||||||||||||||||||||||
Logistics Services: | |||||||||||||||||||||||||||||
Dry-cargo barges | 35 | 35 | 35 | 35 | 32 | ||||||||||||||||||||||||
Towboats: | |||||||||||||||||||||||||||||
Less than 3,300 hp | 2 | 2 | 1 | 1 | — | ||||||||||||||||||||||||
| 1,432 | 1,451 | 1,481 | 1,481 | 1,479 | |||||||||||||||||||||||||
______________________
1.One line handling and one crew transport vessel.
2.Pure Car/Truck Carrier.
3.Roll On/Roll Off.
4.Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.
10