HOUMA, La.--(BUSINESS WIRE)-- SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”), a leading provider of global marine and support transportation services to offshore oil and natural gas exploration, development and production facilities worldwide, today announced results for its quarter ended March 31, 2018.

Net loss attributable to SEACOR Marine Holdings Inc. was $28.8 million ($1.64 per diluted share) for the first quarter ended March 31, 2018. Operating Loss for the quarter was $24.4 million.

Highlights from the first quarter ended March 31, 2018 included the following:

	•		Stronger operating results in almost all of the Company’s major geographic markets drove an improvement of 14.5% over prior quarter, and 197.8% over prior year quarter, in direct vessel profit for the worldwide fleet to $13.4 million as compared to $11.7 million in the prior quarter and $4.5 million in the prior year quarter;
	•		One-time charges and non-cash adjustments for the quarter included: $19.5 million of depreciation, $2.9 million of impairments and $12.2 million mark-to-market adjustment on the convertible senior notes, as well as a $3.9 million positive tax adjustment;
	•		Total operating revenues increased 5% over prior quarter and 51% over prior year quarter in what is historically a seasonally low quarter. Approximately 30% of revenue increase driven by improved performance out of the Company's legacy fleet and remaining due to contributions from acquisitions when comparing to prior year quarter;
	•		Successful closings of previously reported Falcon Global Holdings transaction resulting in an $140.5 million increase in property, plant and equipment, and $20 million cash investment in SEACOSCO joint venture;
	•		The Company's liftboat fleet utilization increased 29% over prior year quarter following consummation of the Falcon Global Holdings transaction in early February; and
	•		The Company delivered an approximately 29% reduction of its unfunded capital commitments by indefinite deferral of over $20 million of vessel orders.

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

“We had a very busy and productive first quarter. In what is historically a seasonally slow period for the maintenance of offshore oil and gas platforms and offshore wind farms supported by our fleet, we experienced sequential improvements in our operating results, reflecting contributions from recent acquisitions and improving market conditions.

We successfully closed on the Falcon Global Holdings and SEACOSCO transactions, substantially expanding our offerings in the liftboat and premium PSV markets. We renegotiated capital commitments for the construction of US flag FSV’s and PSV’s, re-profiling the capital required to fund the commitments over the next three years and indefinitely deferring over $20 million of commitments.

The increased activity experienced across the business this quarter has provided us with cautious optimism that the improved trends will continue throughout the year.

Additionally, in April we completed a private placement of $56.855 million of equity and the conversion of $50 million of our convertible senior notes into equity. These transactions not only strengthen our balance sheet, but also allow us to continue to pursue organic and inorganic opportunities to drive growth and create long term shareholder value.”

For the first quarter ended March 31, 2017, net loss attributable to SEACOR Marine Holdings Inc. was $7.4 million ($0.42 per diluted share). Net income attributable to SEACOR Marine Holdings Inc. for the preceding quarter ended December 31, 2017 was $29.0 million ($1.20 per diluted share).

A comparison of results for the first quarter ended March 31, 2018 with the preceding quarter ended December 31, 2017 is included below.

Operating Revenues. Time charter revenues were $1.4 million higher compared with the preceding quarter. On a total fleet basis, time charter revenues increased by $4.1 million from net fleet additions, $0.8 million due to favorable changes in currency exchange rates and $0.3 million due to an increase in average rates per day worked, which increases were partially offset by decreases of $1.1 million due to reduced utilization of the active fleet, $2.0 million as a consequence of cold-stacking vessels and $0.7 million due to the repositioning of vessels between geographic regions. Other marine services revenues were $1.0 million higher compared with the preceding quarter primarily due to the collection in the first quarter of previously deferred revenues.

Excluding wind farm utility vessels, but including cold-stacked vessels (those that are not currently available for active service), utilization of the fleet decreased from 51% to 50%, and average rates per day worked increased from $8,583 to $9,071. Days available for charter were 1% higher in the first quarter primarily due to net fleet additions. This release includes a table presenting time charter operating data by vessel class.

Direct Vessel Profit (“DVP”)⁽¹⁾ by Region. DVP was $13.4 million compared with $11.7 million in the preceding quarter, an increase of $1.7 million. Improved operating revenues of $2.4 million were offset by increased operating expenses (excluding leased-in equipment) of $0.7 million. Results by region are as follows:

United States, primarily Gulf of Mexico. DVP was $1.5 million compared with $1.3 million in the preceding quarter, a $0.2 million improvement. Time charter revenues were $0.4 million higher compared with the preceding quarter resulting from increased revenues of $2.0 million from fleet additions, which increase was partially offset by $1.5 million due to the cold-stacking of vessels, and $0.1 million lower due to reduced utilization. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 18% to 17%, and average rates per day worked improved by 9% from $8,027 to $8,775. Days available for charter were 5% higher in the first quarter primarily due to fleet additions. Other marine services revenues were $0.6 million higher primarily due to fleet additions. Operating expenses (excluding leased-in equipment) were $0.8 million higher primarily due to fleet additions. As of March 31, 2018, the Company had 33 of 43 owned and leased-in vessels cold-stacked in the U.S. (six anchor handling towing supply vessels, 13 fast support vessels, 12 liftboats, one supply vessel and one specialty vessel) compared with 34 of 42 vessels as of December 31, 2017. As of March 31, 2018, the Company had four anchor handling towing supply vessels and one supply vessel retired and removed from service in this region.

Africa, primarily West Africa. DVP was $4.7 million compared with $3.8 million in the preceding quarter, a $0.9 million improvement. Time charter revenues were $1.3 million higher compared with the preceding quarter reflecting an increase of $2.2 million due to fleet additions, which increase was partially offset by $0.2 million due to reduced utilization of the core fleet, $0.3 million due to a reduction in average day rates and $0.5 million due to the repositioning of vessels between geographic regions. On a regional fleet basis, including cold-stacked vessels, overall utilization of the fleet increased from 75% to 91%, primarily due to the impact of fleet additions, and average rates per day worked decreased by 10% from $10,517 to $9,455. Days available for charter increased by 4% in the first quarter primarily due to fleet additions. As of March 31, 2018, the Company had one specialty vessel retired and removed from service in this region.

Middle East and Asia. DVP was $2.3 million compared with direct vessel loss of $0.2 million in the preceding quarter, a $2.5 million improvement. Time charter revenues were $0.7 million higher compared with the preceding quarter. Time charter revenues were $0.3 million higher due to increased utilization of the core fleet and $1.1 million higher due to an increase in average day rates, which increases were partially offset by $0.5 million due to the effects of cold-stacking vessels and $0.2 million due to the repositioning of vessels between geographic regions. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 68% to 66%, and average rates per day worked improved by 16% from $6,784 to $8,072. Days available for charter decreased by 9% primarily due to the retirement and removal from service of two vessels during the first quarter. Operating expenses (excluding leased-in equipment) were $1.8 million lower compared with the preceding quarter, primarily due to a decrease in drydocking activity and reduced expenditure associated with the repositioning of vessels between geographic regions. As of March 31, 2018, the Company had one of 23 owned and leased-in vessels cold-stacked in the Middle East and Asia (one anchor handling supply vessel) compared with two of 25 vessels as of December 31, 2017. As of March 31, 2018, the Company had two supply vessels and one specialty vessel retired and removed from service in this region.

___________________
(1)		Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “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.

Brazil, Mexico, Central and South America. DVP was $1.8 million compared with $2.1 million in the preceding quarter, a decrease of $0.3 million. Time charter revenues were $0.2 million lower compared with the preceding quarter. On a regional fleet basis, including cold-stacked vessels, utilization of the fleet decreased from 50% to 41%, average rates per day worked decreased by 9% from $16,718 to $15,272 and days available for charter increased by 16% primarily due to repositioning of a vessel between geographic regions. As of March 31, 2018, the Company had one of three owned and leased-in vessels cold-stacked in Brazil, Mexico, Central and South America (one fast support vessel) compared with one of four vessels as of December 31, 2017.

Europe, primarily North Sea. DVP was $3.1 million compared with $4.7 million in the preceding quarter, a decrease of $1.6 million. Time charter revenues were $0.8 million lower, primarily due to a seasonal reduction in utilization of the wind farm utility vessels. For the standby safety fleet, utilization decreased from 82% to 78%, and average rates per day worked improved by 5% from $8,660 to $9,058. For the windfarm utility vessels, utilization decreased from 73% to 64%, and average rates per day worked decreased from $2,330 to $2,317. Operating expenses (excluding leased-in equipment) were $1.0 million higher compared with the preceding quarter primarily due to increased drydocking activity for the standby safety fleet.

Administrative and general. Administrative and general expenses were $0.4 million higher compared with the preceding quarter primarily due to a recovery of doubtful accounts reserved in the preceding quarter.

Depreciation and amortization. Depreciation and amortization costs were $0.5 million lower compared with the preceding quarter.

Asset Dispositions and Impairments. During the first quarter, the Company recognized impairment charges of $2.9 million associated with the Company’s anchor handling towing supply fleet. In addition, the Company sold one offshore support vessel and other equipment for net proceeds of $0.4 million and a gain of $0.3 million. During the preceding quarter, the Company recognized impairment charges of $11.8 million associated with the Company’s anchor handling towing supply fleet. In addition, the Company sold three offshore support vessels previously retired and removed from service and one other offshore support vessel for net proceeds of $0.7 million and losses of $0.5 million.

Derivative gains (losses). Net derivative losses during the first quarter of $11.5 million, and net derivative gains during the preceding quarter of $7.5 million, are principally due to changes in the fair value of the Company’s conversion option liability on its convertible senior notes as a consequence of changes in the Company’s share price and estimated credit spread.

Income tax benefit. The Company's effective income tax rate of 23.8% for the quarter was more than the Company’s statutory rate of 21.0% primarily due to taxes not provided on income attributable to non-controlling interests, foreign source income not subject to U.S. income taxes, and a reversal of an unrecognized tax benefit. During the preceding quarter, the Company recognized tax benefits of $43.7 million as a result of new U.S. tax legislation signed into law on December 22, 2017. The majority of the income tax benefits recognized were due to a reduction in U.S. tax rates from 35% to 21% applied to the Company’s domestic basis differences and the elimination of previously accrued deferred taxes on the unremitted earnings of the Company’s foreign subsidiaries.

Equity in earnings (losses) of 50% or less owned companies. Equity earnings in the first quarter were $0.2 million compared with equity earnings of $9.4 million in the preceding quarter. Equity earnings in the preceding quarter included the recognition of income tax benefits of $7.1 million as a result of new U.S. tax legislation. In addition, during the first quarter the Company recorded impairment charges of $1.2 million related to its investment in SEACOR Grant DIS.

Capital Commitments. As of March 31, 2018, the Company had unfunded capital commitments of $48.8 million that included two fast support vessels, three supply vessels and four wind farm utility vessels. The Company’s capital commitments by year of expected payment are as follows (in thousands):

2018									18,852
2019									21,069
2020									8,951
						$			48,872

In addition, the Company has indefinitely deferred an additional $20.8 million of orders with respect to two fast support vessels for which the Company had previously reported as unfunded capital commitments.

Liquidity and Debt. As of March 31, 2018, the Company’s balances of cash, cash equivalents, restricted cash, and construction reserve funds totaled $110.4 million and its total outstanding debt was $428.1 million (net of $41.4 million in discount and issue costs). These amounts do not reflect the $56,855,000 in gross proceeds received by the Company in April 2018 from the private placement of shares of the Company's common stock. As of March 31, 2018, construction reserve funds of $45.4 million were classified as non-current assets in the accompanying condensed consolidated balance sheets as the Company has the intent and ability to use the funds to acquire equipment. Additionally, the Company had $7.5 million available under subsidiary credit facilities for future capital commitments.

SEACOR Marine provides global marine and support transportation services to offshore oil and natural gas exploration, development and production 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. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including decreased demand and loss of revenues as a result of a decline in the price of oil and resulting decrease in capital spending by oil and gas companies, an oversupply of newly built offshore support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums, weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to a decline in the price of oil, increased government legislation and regulation of the Company’s businesses could increase cost of operations, increased competition if the Jones Act and related regulations are repealed, liability, legal fees and costs in connection with the provision of emergency response services, such as the response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand for the Company’s services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, changes to the status of applicable trade treaties including as a result of the U.K.’s impending exit from the European Union, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Jones Act and related regulations on the amount of foreign ownership of the Company’s Common Stock, operational risks, effects of adverse weather conditions and seasonality, adequacy of insurance coverage, the ability of the Company to maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K and other reports filed by the Company with the SEC. It should be understood that it is not possible to predict or identify all such factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties and 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.

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except share data)
		Three Months Ended March 31,
		2018				2017
Operating Revenues		$	51,721			$	34,304
Costs and Expenses:
Operating			41,173				33,379
Administrative and general			12,807				11,826
Depreciation and amortization			19,512				12,503
			73,492				57,708
Gains (Losses) on Asset Dispositions and Impairments, Net			(2,643	)			4,819
Operating Loss			(24,414	)			(18,585	)
Other Income (Expense):
Interest income			216				850
Interest expense			(6,133	)			(3,182	)
SEACOR Holdings management fees			-				(1,925	)
SEACOR Holdings guarantee fees			(12	)			(76	)
Marketable security gains, net			-				11,738
Derivative losses, net			(11,516	)			(89	)
Foreign currency gains (losses), net			139				(189	)
Other, net			-				(1	)
			(17,306	)			7,126
Loss Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies			(41,720	)			(11,459	)
Income Tax Benefit			(9,824	)			(3,422	)
Loss Before Equity in Earnings of 50% or Less Owned Companies			(31,896	)			(8,037	)
Equity in Earnings of 50% or Less Owned Companies, Net of Tax			208				438
Net Loss			(31,688	)			(7,599	)
Net Loss attributable to Noncontrolling Interests in Subsidiaries			(2,855	)			(204	)
Net Loss attributable to SEACOR Marine Holdings Inc.		$	(28,833	)		$	(7,395	)
Basic and Diluted Loss Per Common Share of SEACOR Marine Holdings Inc.		$	(1.64	)		$	(0.42	)
Basic and Diluted Weighted Average Common Shares Outstanding:			17,571,490				17,671,356

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except statistics and per share data)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Time Charter Statistics:
Average Rates Per Day Worked (excluding wind farm utility)			$	9,071			$	8,583			$	8,565			$	8,431			$	8,272
Average Rates Per Day Worked			$	7,001			$	6,435			$	6,006			$	5,649			$	5,726
Fleet Utilization (excluding wind farm utility)				50 %				51	%			49	%			43	%			38	%
Fleet Utilization				53 %				56	%			60	%			56	%			46	%
Fleet Available Days (excluding wind farm utility)				9,271				9,224				9,176				8,996				8,437
Fleet Available Days				12,601				12,628				12,580				12,363				11,767
Operating Revenues:
Time charter			$	47,142			$	45,745			$	45,267			$	38,803			$	30,730
Bareboat charter				1,143				1,169				1,168				1,156				1,143
Other marine services				3,436				2,429				1,378				2,364				2,431
				51,721				49,343				47,813				42,323				34,304
Costs and Expenses:
Operating, excluding leased-in equipment				38,348				37,649				38,422				40,792				29,788
Operating, leased-in equipment				2,825				2,831				2,836				3,690				3,591
Administrative and general				12,807				12,368				10,318				21,705				11,826
Depreciation and amortization				19,512				20,021				15,622				14,633				12,503
				73,492				72,869				67,198				80,820				57,708
Gains (Losses) on Asset Dispositions and Impairments, Net				(2,643)				(12,304	)			(9,744	)			(6,318	)			4,819
Operating Loss				(24,414)				(35,830	)			(29,129	)			(44,815	)			(18,585	)
Other Income (Expense):
Interest income				216				326				354				275				850
Interest expense				(6,133)				(4,509	)			(4,295	)			(4,546	)			(3,182	)
SEACOR Holdings management fees				—				—				—				(1,283	)			(1,925	)
SEACOR Holdings guarantee fees				(12)				(29	)			(21	)			(75	)			(76	)
Marketable security gains (losses), net				—				—				(698	)			(109	)			11,738
Derivative gains (losses), net				(11,516)				7,536				13,022				(213	)			(89	)
Foreign currency gains (losses), net				139				(320	)			(106	)			(1,094	)			(189	)
Other, net				—				(5	)			—				—				(1	)
				(17,306)				2,999				8,256				(7,045	)			7,126
Loss Before Income Tax Benefit and Equity in Earnings (Losses) of 50% or Less Owned Companies				(41,720)				(32,831	)			(20,873	)			(51,860	)			(11,459	)
Income Tax Benefit				(9,824)				(51,361	)			(5,823	)			(13,800	)			(3,422	)
Income (Loss) Before Equity in Earnings (Losses) of 50% or Less Owned Companies				(31,896)				18,530				(15,050	)			(38,060	)			(8,037	)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax				208				9,374				(7,306	)			1,571				438
Net Income (Loss)				(31,688)				27,904				(22,356	)			(36,489	)			(7,599	)
Net Loss attributable to Noncontrolling Interests in Subsidiaries				(2,855)				(1,057	)			(1,881	)			(2,497	)			(204	)
Net Income (Loss) attributable to SEACOR Marine Holdings Inc.			$	(28,833)			$	28,961			$	(20,475	)		$	(33,992	)		$	(7,395	)
Income (Loss) Per Common Share of SEACOR Marine Holdings Inc.:
Basic			$	(1.64	)		$	1.65			$	(1.17	)		$	(1.93	)		$	(0.42	)
Diluted			$	(1.64	)		$	1.20			$	(1.25	)		$	(1.93	)		$	(0.42	)
Weighted Average Common Shares of Outstanding:
Basic				17,571				17,552				17,551				17,632				17,671
Diluted				17,571				21,629				21,621				17,632				17,671
Common Shares Outstanding at Period End				17,787				17,675				17,671				17,671				17,671

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked			$	8,775			$	8,027			$	7,212			$	9,619			$	10,133
Fleet utilization				17%				18	%			16	%			13	%			7	%
Fleet available days				4,050				3,864				3,859				4,063				3,998
Out-of-service days for repairs, maintenance and drydockings				219				139				338				221				159
Out-of-service days for cold-stacked status				3,111				3,010				2,746				3,070				3,456
Operating revenues:
Time charter			$	5,982			$	5,608			$	4,587			$	4,889			$	2,995
Other marine services				1,655				1,077				1,116				1,198				826
				7,637				6,685				5,703				6,087				3,821
Direct operating expenses:
Personnel				3,992				3,853				4,455				4,183				3,130
Repairs and maintenance				694				631				1,289				937				737
Drydocking				525				(164	)			1,109				310				573
Insurance and loss reserves				434				678				598				1,205				805
Fuel, lubes and supplies				493				381				249				545				310
Other				25				3				123				51				72
				6,163				5,382				7,823				7,231				5,627
Direct Vessel Profit (Loss)			$	1,474			$	1,303			$	(2,120	)		$	(1,144	)		$	(1,806	)
Leased-in equipment (included in operating costs and expenses)			$	1,862			$	1,866			$	1,870			$	2,205			$	2,211
Depreciation and amortization			$	6,535			$	5,487			$	5,224			$	5,749			$	5,600
Africa, primarily West Africa
Time Charter Statistics:
Average rates per day worked			$	9,455			$	10,517			$	10,611			$	10,348			$	9,388
Fleet utilization				91%				75	%			71	%			67	%			61	%
Fleet available days				1,260				1,207				1,283				1,123				1,019
Out-of-service days for repairs, maintenance and drydockings				31				34				79				125				19
Out-of-service days for cold-stacked status				—				92				184				91				180
Operating revenues:
Time charter			$	10,794			$	9,533			$	9,700			$	7,786			$	5,847
Other marine services				1,287				983				(310	)			215				192
				12,081				10,516				9,390				8,001				6,039
Direct operating expenses:
Personnel				4,073				3,795				3,588				3,428				2,608
Repairs and maintenance				1,356				855				1,324				3,234				544
Drydocking				2				129				311				683				1,057
Insurance and loss reserves				218				(19	)			157				357				182
Fuel, lubes and supplies				669				859				693				704				559
Other				1,036				1,098				704				871				646
				7,354				6,717				6,777				9,277				5,596
Direct Vessel Profit (Loss)			$	4,727			$	3,799			$	2,613			$	(1,276	)		$	443
Leased-in equipment (included in operating costs and expenses)			$	963			$	965			$	966			$	969			$	970
Depreciation and amortization			$	2,807			$	3,175			$	2,456			$	2,059			$	1,590

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued) (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Middle East and Asia
Time Charter Statistics:
Average rates per day worked			$	8,072			$	6,784			$	7,138			$	6,580			$	7,017
Fleet utilization				66%				68	%			61	%			55	%			49	%
Fleet available days				2,132				2,331				2,194				2,067				1,710
Out-of-service days for repairs, maintenance and drydockings				151				104				95				122				50
Out-of-service days for cold-stacked status				130				119				184				304				320
Operating revenues:
Time charter			$	11,374			$	10,682			$	9,490			$	7,415			$	5,823
Other marine services				(130)				(171	)			(341	)			109				877
				11,244				10,511				9,149				7,524				6,700
Direct operating expenses:
Personnel				4,022				4,882				4,731				4,147				3,123
Repairs and maintenance				2,428				2,205				2,309				3,947				576
Drydocking				(11)				554				(102	)			358				158
Insurance and loss reserves				236				382				363				353				346
Fuel, lubes and supplies				1,034				1,180				1,115				908				524
Other				1,208				1,522				1,192				1,061				1,465
				8,917				10,725				9,608				10,774				6,192
Direct Vessel Profit (Loss)			$	2,327			$	(214	)		$	(459	)		$	(3,250	)		$	508
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	516			$	346
Depreciation and amortization			$	6,090			$	6,898			$	4,320			$	3,979			$	2,527
Brazil, Mexico, Central and South America
Time Charter Statistics:
Average rates per day worked			$	15,272			$	16,718			$	16,060			$	—			$	—
Fleet utilization				41%				50	%			49	%			—	%			—	%
Fleet available days				219				184				184				105				90
Out-of-service days for cold-stacked status				90				92				92				91				90
Operating revenues:
Time charter			$	1,374			$	1,538			$	1,439			$	—			$	—
Bareboat charter				1,143				1,169				1,168				1,156				1,143
Other marine services				110				156				159				162				75
				2,627				2,863				2,766				1,318				1,218
Direct operating expenses:
Personnel				376				322				326				148				13
Repairs and maintenance				305				44				110				116				4
Insurance and loss reserves				67				230				75				4				7
Fuel, lubes and supplies				65				163				33				27				—
Other				60				44				69				3				1
				873				803				613				298				25
Direct Vessel Profit			$	1,754			$	2,060			$	2,153			$	1,020			$	1,193
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	—			$	—
Depreciation and amortization			$	1,219			$	1,134			$	1,025			$	784			$	665

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued) (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Europe, primarily North Sea
Time Charter Statistics:
Average rates per day worked - Standby safety			$	9,058			$	8,660			$	8,650			$	8,457			$	8,131
Fleet utilization - Standby safety				78%				82	%			84	%			80	%			80	%
Fleet available days - Standby safety				1,849				1,822				1,840				1,820				1,800
Average rates per day worked - Wind farm utility				2,317				2,330				2,221				2,124				2,005
Fleet utilization - Wind farm utility				64%				73	%			94	%			95	%			69	%
Fleet available days - Wind farm utility				3,091				3,220				3,220				3,185				3,150
Out-of-service days for repairs, maintenance and drydockings				137				249				110				124				173
Operating revenues:
Time charter			$	17,618			$	18,384			$	20,051			$	18,713			$	16,065
Other marine services				514				384				754				680				461
				18,132				18,768				20,805				19,393				16,526
Direct operating expenses:
Personnel				9,213				9,101				9,079				8,671				7,917
Repairs and maintenance				2,290				2,490				2,378				2,191				1,734
Drydocking				1,741				919				961				900				1,279
Insurance and loss reserves				235				172				203				207				219
Fuel, lubes and supplies				1,284				1,037				790				1,006				949
Other				278				303				190				237				250
				15,041				14,022				13,601				13,212				12,348
Direct Vessel Profit			$	3,091			$	4,746			$	7,204			$	6,181			$	4,178
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	—			$	64
Depreciation and amortization			$	2,861			$	3,327			$	2,597			$	2,062			$	2,121

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Anchor handling towing supply
Time Charter Statistics:
Average rates per day worked			$	10,322			$	10,322			$	9,766			$	10,774			$	13,341
Fleet utilization				21%				21	%			25	%			24	%			15	%
Fleet available days				1,260				1,288				1,288				1,274				1,260
Out-of-service days for repairs, maintenance and drydockings				36				5				69				43				15
Out-of-service days for cold-stacked status				947				943				851				856				958
Operating revenues:
Time charter			$	2,787			$	2,849			$	3,199			$	3,299			$	2,570
Other marine services				1,438				698				(88	)			(50	)			(163	)
				4,225				3,547				3,111				3,249				2,407
Direct operating expenses:
Personnel				1,397				2,381				2,388				2,745				2,494
Repairs and maintenance				394				498				565				990				497
Drydocking				480				(30	)			125				62				348
Insurance and loss reserves				91				195				176				307				357
Fuel, lubes and supplies				153				446				158				317				416
Other				452				(499	)			(170	)			(425	)			(284	)
				2,967				2,991				3,242				3,996				3,828
Direct Vessel Profit (Loss)			$	1,258			$	556			$	(131	)		$	(747	)		$	(1,421	)
Leased-in equipment (included in operating costs and expenses)			$	1,858			$	1,862			$	1,866			$	1,869			$	1,873
Depreciation and amortization			$	1,490			$	2,430			$	2,419			$	2,418			$	2,419
Fast support
Time Charter Statistics:
Average rates per day worked			$	7,746			$	7,414			$	7,999			$	8,086			$	7,417
Fleet utilization				53%				52	%			49	%			43	%			44	%
Fleet available days				3,780				3,864				3,885				3,684				3,212
Out-of-service days for repairs, maintenance and drydockings				109				155				208				242				83
Out-of-service days for cold-stacked status				1,253				1,324				1,447				1,580				1,439
Operating revenues:
Time charter			$	15,427			$	14,845			$	15,271			$	12,712			$	10,542
Other marine services				(656)				(399	)			(410	)			152				853
				14,771				14,446				14,861				12,864				11,395
Direct operating expenses:
Personnel				4,756				5,717				5,405				4,815				4,010
Repairs and maintenance				2,544				1,853				2,680				5,893				709
Drydocking				(9)				684				247				979				1,010
Insurance and loss reserves				324				129				297				381				462
Fuel, lubes and supplies				795				849				975				990				612
Other				1,460				2,356				1,610				1,527				1,324
				9,870				11,588				11,214				14,585				8,127
Direct Vessel Profit (Loss)			$	4,901			$	2,858			$	3,647			$	(1,721	)		$	3,268
Leased-in equipment (included in operating costs and expenses)			$	342			$	343			$	343			$	860			$	690
Depreciation and amortization			$	6,585			$	6,521			$	5,000			$	4,403			$	3,418

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Supply
Time Charter Statistics:
Average rates per day worked			$	6,454			$	5,222			$	6,279			$	6,028			$	11,707
Fleet utilization				73%				81	%			65	%			48	%			20	%
Fleet available days				633				594				507				580				630
Out-of-service days for repairs, maintenance and drydockings				16				2				36				3				—
Out-of-service days for cold-stacked status				68				25				99				182				194
Operating revenues:
Time charter			$	3,002			$	2,527			$	2,062			$	1,679			$	1,457
Other marine services				1,125				1,122				1,079				1,069				1,077
				4,127				3,649				3,141				2,748				2,534
Direct operating expenses:
Personnel				1,956				1,604				1,321				1,198				1,055
Repairs and maintenance				445				266				321				362				200
Insurance and loss reserves				102				210				26				34				74
Fuel, lubes and supplies				694				632				194				156				171
Other				719				348				158				252				954
				3,916				3,060				2,020				2,002				2,454
Direct Vessel Profit			$	211			$	589			$	1,121			$	746			$	80
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	331			$	332
Depreciation and amortization			$	2,743			$	3,566			$	1,226			$	1,278			$	1,295
Standby safety
Time Charter Statistics:
Average rates per day worked			$	9,058			$	8,660			$	8,650			$	8,457			$	8,131
Fleet utilization				78%				82	%			84	%			80	%			80	%
Fleet available days				1,849				1,822				1,840				1,820				1,800
Out-of-service days for repairs, maintenance and drydockings								78				96				108				87
Operating revenues:
Time charter			$	13,051			$	12,921			$	13,328			$	12,279			$	11,695
Other marine services				40				38				32				36				33
				13,091				12,959				13,360				12,315				11,728
Direct operating expenses:
Personnel				6,938				6,901				6,955				6,698				6,334
Repairs and maintenance				1,554				1,570				1,943				1,610				1,208
Drydocking				1,741				919				960				900				1,280
Insurance and loss reserves				138				106				116				137				136
Fuel, lubes and supplies				991				894				723				844				825
Other				161				220				156				199				197
				11,523				10,610				10,853				10,388				9,980
Direct Vessel Profit			$	1,568			$	2,349			$	2,507			$	1,927			$	1,748
Depreciation and amortization			$	694			$	769			$	578			$	566			$	559

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Specialty
Time Charter Statistics:
Average rates per day worked			$	—			$	—			$	—			$	12,000			$	—
Fleet utilization				—	%			—	%			—	%			5	%			—	%
Fleet available days				90				276				276				273				270
Out-of-service days for repairs, maintenance and drydockings				—				24				25				7				—
Out-of-service days for cold-stacked status				90				160				159				182				239
Operating revenues:
Time charter			$	—			$	(1	)		$	—			$	149			$	—
Other marine services				—				1				268				278				—
				—				—				268				427				—
Direct operating expenses:
Personnel				164				472				413				316				265
Repairs and maintenance				37				77				40				56				40
Drydocking				(6)				(136	)			736				—				—
Insurance and loss reserves				10				102				21				35				61
Fuel, lubes and supplies				83				20				92				59				70
Other				104				85				84				98				149
				392				620				1,386				564				585
Direct Vessel Loss			$	(392)			$	(620	)		$	(1,118	)		$	(137	)		$	(585	)
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	—			$	—
Depreciation and amortization			$	282			$	283			$	579			$	579			$	581
Liftboats
Time Charter Statistics:
Average rates per day worked			$	16,068			$	16,662			$	11,899			$	10,315			$	9,782
Fleet utilization				30%				30	%			28	%			16	%			1	%
Fleet available days				1,659				1,380				1,380				1,365				1,265
Out-of-service days for repairs, maintenance and drydockings				116				92				174				173				130
Out-of-service days for cold-stacked status				933				771				551				605				1,059
Operating revenues:
Time charter			$	8,126			$	6,954			$	4,659			$	2,251			$	95
Other marine services				756				393				447				384				41
				8,882				7,347				5,106				2,635				136
Direct operating expenses:
Personnel				3,461				2,577				3,394				2,748				1,006
Repairs and maintenance				1,134				990				1,288				915				405
Drydocking				51				1				211				310				429
Insurance and loss reserves				651				722				684				1,167				375
Fuel, lubes and supplies				668				632				646				667				122
Other				417				333				352				488				14
				6,382				5,255				6,575				6,295				2,351
Direct Vessel Profit (Loss)			$	2,500			$	2,092			$	(1,469	)		$	(3,660	)		$	(2,215	)
Leased-in equipment (included in operating costs and expenses)			$	638			$	626			$	627			$	630			$	632
Depreciation and amortization			$	5,025			$	3,160			$	3,045			$	3,045			$	1,923

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued) (in thousands, except statistics
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Wind farm utility
Time Charter Statistics:
Average rates per day worked			$	2,305			$	2,318			$	2,220			$	2,124			$	2,005
Fleet utilization				62%				72	%			89	%			90	%			65	%
Fleet available days				3,330				3,404				3,404				3,367				3,330
Out-of-service days for repairs, maintenance and drydockings				113				171				14				16				86
Out-of-service days for cold-stacked status				40				92				99				152				157
Operating revenues:
Time charter			$	4,749			$	5,650			$	6,748			$	6,434			$	4,371
Other marine services				429				295				688				583				362
				5,178				5,945				7,436				7,017				4,733
Direct operating expenses:
Personnel				2,222				2,295				2,265				2,036				1,642
Repairs and maintenance				825				969				575				599				536
Insurance and loss reserves				103				74				89				83				89
Fuel, lubes and supplies				144				146				93				162				126
Other				96				121				87				80				88
				3,390				3,605				3,109				2,960				2,481
Direct Vessel Profit			$	1,788			$	2,340			$	4,327			$	4,057			$	2,252
Leased-in equipment (included in operating costs and expenses)			$	—			$	—			$	—			$	—			$	64
Depreciation and amortization			$	2,428			$	2,903			$	2,293			$	1,768			$	1,829
Other Activity
Operating revenues:
Other marine services			$	1,447			$	1,450			$	530			$	1,068			$	1,371
Direct operating expenses:
Personnel				782				6				38				21				(15	)
Repairs and maintenance				140				2				(2	)			—				—
Insurance and loss reserves				(229)				(95	)			(13	)			(18	)			5
Fuel, lubes and supplies				17				1				(1	)			(5	)			—
Other				(802)				6				1				4				(8	)
				(92)				(80	)			23				2				(18	)
Direct Vessel Profit			$	1,539			$	1,530			$	507			$	1,066			$	1,389
Leased-in equipment (included in operating costs and expenses)				(13)				—				—				—				—
Depreciation and amortization			$	265			$	389			$	482			$	576			$	479

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION) (in thousands)
			Three Months Ended
			Mar. 31, 2018				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Cash Flows from Operating Activities:
DVP			$	13,373			$	11,694			$	9,391			$	1,531			$	4,516
Operating, leased-in equipment (excluding amortization of deferred gains)				(4,834)				(4,840	)			(4,845	)			(5,740	)			(5,641	)
Administrative and general (excluding provisions for bad debts and amortization of share awards)				(12,357)				(12,091	)			(11,139	)			(22,596	)			(10,267	)
SEACOR Holdings management and guarantee fees				(12)				(29	)			(21	)			(1,358	)			(2,001	)
Other, net (excluding non-cash losses)				—				(5	)			—				—				(1	)
Dividends received from 50% or less owned companies				—				200				800				1,642				—
				(3,830)				(5,071	)			(5,814	)			(26,521	)			(13,394	)
Changes in operating assets and liabilities before interest and income taxes				(4,938)				9,003				(14,428	)			8,300				3,415
Proceeds from sale of marketable securities				—				—				—				—				51,877
Cash settlements on derivative transactions, net				(129)				(140	)			(184	)			(166	)			(22	)
Interest paid, excluding capitalized interest				(2,828)				(4,471	)			(1,119	)			(3,626	)			—
Interest received				216				326				354				275				2,372
Income taxes (paid) refunded, net				—				(52	)			2,599				10,178				21,048
Net cash provided by (used in) operating activities (GAAP Measure)				(11,509)				(405	)			(18,592	)			(11,560	)			65,296
Cash Flows from Investing Activities:
Purchases of property and equipment, excluding capitalized interest				(8,557)				(16,105	)			(22,796	)			(17,006	)			(9,484	)
Capitalized interest paid				—				(563	)			(754	)			(1,654	)			(659	)
Cash settlements on derivative transactions, net				—				—				(45	)			—				(324	)
Proceeds from disposition of property and equipment				282				1,046				248				1,252				8,297
Construction reserve funds (deposits) withdrawals, net				—				94				22,344				15,678				(5,268	)
Net investing activities in property and equipment				(8,275)				(15,528	)			(1,003	)			(1,730	)			(7,438	)
Net investing activities in 50% or less owned companies				(19,950)				(366	)			(773	)			(1,733	)			4,956
Net investing activities in third party notes receivable				99				—				—				—				—
Cash assumed on consolidation of 50% or less owned companies				—				—				—				—				1,943
Business acquisitions, net of cash acquired				—				—				—				(9,751	)			—
Net cash used in investing activities (GAAP Measure)				(28,126)				(15,894	)			(1,776	)			(13,214	)			(539	)
Cash Flows from Financing Activities:
Payments on long-term debt				(28,807)				(3,354	)			(4,599	)			(2,800	)			(1,173	)
Proceeds from issuance of debt, net of issue costs				18,471				(300	)			3,622				(173	)			3,396
Proceeds from issuance of stock				1,793				—				—				—				—
Distribution of SEACOR Marine restricted stock to Company personnel by SEACOR Holdings				—				—				—				(2,656	)			—
Purchase of subsidiary shares from noncontrolling interests				—				—				—				(3,693	)			—
Net cash provided by (used in) financing activities (GAAP Measure)				(8,543)				(3,654	)			(977	)			(9,322	)			2,223
Effects of Exchange Rate Changes on Cash and Cash Equivalents				682				528				539				858				269
Net Increase (Decrease) in Cash and Cash Equivalents				(47,496)				(19,425	)			(20,806	)			(33,238	)			67,249
Cash, Cash Equivalents and Restricted Cash, Beginning of Period				112,551				131,976				152,782				186,020				118,771
Cash, Cash Equivalents and Restricted Cash, End of Period			$	65,055			$	112,551			$	131,976			$	152,782			$	186,020

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
			Mar. 31, 2018					Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
ASSETS
Current Assets:
Cash and cash equivalents			$	62,738				$	110,234			$	130,357			$	150,958			$	184,209
Restricted cash				2,316					2,317				1,619				1,824				1,811
Marketable securities				—					—				—				688				785
Receivables:
Trade, net of allowance for doubtful accounts				45,664					45,616				54,124				43,475				48,044
Other				17,039					12,341				8,942				11,957				11,701
Inventories				3,975					3,756				3,786				3,376				3,421
Prepaid expenses and other				3,613					3,026				3,364				3,719				3,068
Total current assets				135,345					177,290				202,192				215,997				253,039
Property and Equipment:
Historical cost				1,320,496					1,179,836				1,204,409				1,155,155				1,089,176
Accumulated depreciation				(580,461	)				(560,160	)			(558,919	)			(543,822	)			(534,522	)
				740,035					619,676				645,490				611,333				554,654
Construction in progress				80,682					70,157				60,597				90,335				83,710
Net property and equipment				820,717					689,833				706,087				701,668				638,364
Investments, at Equity, and Advances to 50% or Less Owned Companies				112,219					92,169				89,984				100,719				114,767
Construction Reserve Funds				45,361					45,361				45,455				67,799				83,477
Other Assets				3,736					3,851				6,213				6,072				6,176
			$	1,117,378				$	1,008,504			$	1,049,931			$	1,092,255			$	1,095,823
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt			$	22,858				$	22,858				30,858			$	81,593			$	26,600
Accounts payable and accrued expenses				25,551					24,024				23,487				23,436				26,399
Due to SEACOR Holdings				1,583					1,358				663				3,519				1,827
Other current liabilities				55,365					50,978				54,210				47,014				46,055
Total current liabilities				105,357					99,218				109,218				155,562				100,881
Long-Term Debt				405,234					292,041				285,869				233,904				274,408
Conversion Option Liability on Convertible Senior Notes				18,991					6,832				14,135				27,109				—
Deferred Income Taxes				56,024					55,506				106,389				117,332				121,028
Deferred Gains and Other Liabilities				28,600					31,741				36,314				39,324				38,820
Total liabilities			$	614,206				$	485,338			$	551,925			$	573,231			$	535,137
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock			$	178				$	177			$	177			$	177			$	177
Additional paid-in capital				306,639					303,996				302,952				302,678				306,359
Retained earnings				175,609					216,511				187,550				208,025				242,017
Accumulated other comprehensive loss, net of tax				(10,424	)				(12,493	)			(8,685	)			(9,690	)			(10,679	)
				472,002					508,191				481,994				501,190				537,874
Noncontrolling interests in subsidiaries				31,170					14,975				16,012				17,834				22,812
Total equity				503,172					523,166				498,006				519,024				560,686
			$	1,117,378				$	1,008,504			$	1,049,931			$	1,092,255			$	1,095,823

SEACOR MARINE HOLDINGS INC. UNAUDITED FLEET COUNTS
			Mar. 31, 2018(1)				Dec. 31, 2017				Sep. 30, 2017				Jun. 30, 2017				Mar. 31, 2017
Anchor handling towing supply				19				23				23				25				25
Fast support				50				50				50				49				51
Supply				29				31				27				26				28
Standby safety				22				20				21				21				21
Specialty				4				4				6				6				6
Liftboats				21				15				15				15				15
Wind farm utility				41				41				41				40				40
				186				184				183				182				186

______________________
(1)		Excludes eight owned and one leased-in offshore support vessels that have been retired and removed from service.

SEACOR MARINE HOLDINGS INC. UNAUDITED EXPECTED FLEET DELIVERIES
				2018													2019																	2020
				Q2				Q3				Q4					Q1				Q2				Q3				Q4					Q1					Deferred					Total
Fast support					—				—				—					1				—				—				—					1					2					4
Supply					—				1				—					—				—				1				—					1					—					3
Wind farm utility					1				2				—					1				—				—				—					—					—					4

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20180510006314/en/

SEACOR Marine Holdings Inc.
Erica Bartsch, 212-446-1875
ebartsch@seacormarine.com.

Source: SEACOR Marine Holdings Inc.