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SEACOR Holdings Announces Results for the Third Quarter Ended September 30, 2020

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FORT LAUDERDALE, Fla., Oct. 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."

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.

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.

 
 
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.
 


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.
 


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.
 

 


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.
 


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 
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