Seacor Marine Announces Second Quarter 2020 Results

August 6, 2020 at 4:53 PM EDT

HOUSTON, Aug. 06, 2020 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced results for its second quarter ended June 30, 2020.

Notable second quarter items include:

Acquisition of the remaining 50% of the equity interests in SEACOSCO Offshore LLC (“SEACOSCO”) on June 30, 2020 for total consideration of $28.2 million payable over four years. The transaction adds eight modern platform supply vessels to SEACOR Marine’s owned vessel fleet, six of which are equipped with a state-of-the-art battery energy storage system designed to reduce fuel consumption and enhance the safety and redundancy of the vessels’ systems. The vessels and the debt associated with the transaction are included in the second quarter numbers, but the operating results of the joint venture were not consolidated in the quarter. SEACOR Marine expects the vessels to generate cash in future quarters in excess of scheduled debt amortization payments.
Entry into an agreement with SEACOR Holdings Inc. permitting SEACOR Marine to carry back net operating losses under provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). SEACOR Marine expects to receive approximately $31.2 million of cash tax refunds under the CARES Act. SEACOR Marine paid a one-time transaction fee of $3.0 million to SEACOR Holdings Inc. as consideration for entry into the agreement that is reflected in the general and administrative costs for the second quarter.
Average dayrates, excluding those for the crew transfer vessel fleet, were $11,018 in the second quarter of 2020 and $10,387 in the second quarter of 2019. The improved average dayrates year on year reflect the improvement in SEACOR Marine’s overall fleet mix since the second quarter of the prior year.
Both COVID-19 and volatility in oil prices impacted second quarter revenues. SEACOR Marine expects such volatility to continue at least for the remainder of this year. SEACOR Marine is unable to quantify such impact at this point but will continue to closely monitor the level of activity from its oil and gas customers and adjust its operations accordingly.
Administrative and general expenses in the second quarter were $14.5 million, including $3.7 million in non-recurring expenses comprised of $3.3 million of transaction, legal and advisory fees related to the carry back of net operating losses pursuant to the CARES Act, and a one-time restructuring charge of $0.4 million from SEACOR Marine’s continuing cost reduction initiatives. SEACOR Marine maintains its target for projected annual savings of at least $8.0 million, of which it has already achieved $7.8 million. SEACOR Marine anticipates that the cost reduction initiatives will impact all of its reportable segments and expects the remaining cost reduction initiatives to be completed by the end of the third quarter of 2020. SEACOR Marine continues to evaluate additional opportunities for further cost reductions to continue adapting to the changing conditions.

Overall, total operating revenues for the second quarter were $41.9 million, operating loss was $16.7 million, and direct vessel profit (“DVP”)⁽¹⁾ was $18.0 million. This compares to operating revenues of $52.8 million, operating loss of $17.6 million, and DVP of $17.4 million in the second quarter of 2019. The improved DVP in the second quarter was primarily driven by the change in fleet mix over the period.

Chief Executive Officer John Gellert commented on SEACOR Marine's second quarter results:

“SEACOR Marine delivered solid operating and financial results in an extremely challenging environment. All our international operating regions showed significant improvements in key metrics, reflecting the efforts made to improve our market presence, fleet mix and overhead expenses. Our U.S. operations saw a steep decline in activity, mostly in liftboat demand, which continues to be challenged by the effects of low commodity prices on our customers and tepid decommissioning activity.

“Notwithstanding this difficult environment we were able to execute two transactions that will enhance our results and strengthen our liquidity. The acquisition of our partner’s interest in SEACOSCO is expected to be accretive to our results this year, and the ability to carry back net operating losses pursuant to the CARES Act adds incremental liquidity.

“Finally, I want to recognize and thank the SEACOR Marine team for these results and their continuing dedication to maintaining safe and reliable operations for our customers worldwide. I particularly thank our seafarers, many of whom have worked extended rotations due to the COVID-19 pandemic and continue to face challenges returning home. We appreciate the cooperation and assistance of our customers and suppliers in navigating the complex logistics of the unprecedented COVID-19 operating environment.”

For the second quarter of 2020, net loss attributable to SEACOR Marine was $6.1 million ($0.24 loss per basic and diluted share) and operating loss was $16.7 million. Net loss attributable to SEACOR Marine’s continuing operations for the second quarter of 2019 was $31.4 million ($1.26 loss per basic and diluted share) and operating loss was $17.6 million.

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Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability when applied to reportable segments and a non-GAAP measure when applied to individual vessels, fleet categories or the combined fleet. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its individual vessels, fleet categories, regions and combined fleet, without regard to financing decisions (depreciation and interest expense for owned vessels vs. leased-in expense for leased-in vessels). DVP is also useful when comparing the Company’s fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

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

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact Connie Morinello at (346) 980-1700 or InvestorRelations@seacormarine.com

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except share data)

	Three Months Ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Operating Revenues	$	41,878		$	52,812		$	83,621		$	97,722
Costs and Expenses:
Operating		23,913			35,370			48,533			70,536
Administrative and general		14,560			10,524			25,325			21,336
Lease expense		1,355			4,298			4,762			8,435
Depreciation and amortization		15,313			16,412			30,314			32,509
		55,141			66,604			108,934			132,816
(Loss) Gain on Asset Dispositions and Impairments, Net		(3,453	)		(3,848	)		(16,025	)		(3,580	)
Operating Loss		(16,716	)		(17,640	)		(41,338	)		(38,674	)
Other Income (Expense):
Interest income		529			215			1,205			569
Interest expense		(6,995	)		(7,633	)		(14,633	)		(15,297	)
SEACOR Holdings guarantee fees		(9	)		(32	)		(25	)		(61	)
Derivative gains (losses), net		85			(1,398	)		5,199			(2,323	)
Foreign currency gains, net		(171	)		(924	)		(106	)		(254	)
		(6,561	)		(9,772	)		(8,360	)		(17,366	)
Loss from Continuing Operations Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies		(23,277	)		(27,412	)		(49,698	)		(56,040	)
Income Tax Benefit		(15,081	)		(3,052	)		(21,749	)		(6,883	)
Loss from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies		(8,196	)		(24,360	)		(27,949	)		(49,157	)
Equity in Losses of 50% or Less Owned Companies		2,130			(7,078	)		1,891			(10,554	)
Loss from Continuing Operations		(6,066	)		(31,438	)		(26,058	)		(59,711	)
(Loss) Income on Discontinued Operations, Net of Tax		—			1,174.0			—			1,174
Net Loss		(6,066	)		(30,264	)		(26,058	)		(58,537	)
Net Loss attributable to Noncontrolling Interests in Subsidiaries		7			(1,875	)		(4,040	)		(4,599	)
Net Loss attributable to SEACOR Marine Holdings Inc.	$	(6,073	)	$	(28,389	)	$	(22,018	)	$	(53,938	)

Basic and Diluted Loss Per Common Share and Warrants of SEACOR Marine Holdings Inc.
Continuing operations	$	(0.24	)	$	(1.26	)	$	(0.90	)	$	(2.37	)
Discontinued operations		—			0.05			—		$	0.05
	$	(0.24	)	$	(1.21	)	$	(0.90	)	$	(2.32	)
Weighted Average Common Shares and Warrants Outstanding:
Basic and diluted shares		24,851,834			23,382,272			24,420,432			23,237,012

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except statistics and per share data)

	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
Time Charter Statistics:
Average Rates Per Day Worked (excluding crew transfer)	$	11,018		$	11,157		$	11,071		$	10,946		$	10,387
Average Rates Per Day	$	6,648		$	7,163		$	7,260		$	6,981		$	6,843
Fleet Utilization (excluding crew transfer)		57	%		57	%		62	%		64	%		59	%
Fleet Utilization		69	%		63	%		68	%		74	%		69	%
Fleet Available Days (excluding crew transfer)		5,167			5,210			5,542			6,048			6,491
Fleet Available Days		8,688			8,668			9,007			9,578			9,990
Operating Revenues:
Time charter	$	39,807		$	39,290		$	44,465		$	49,747		$	47,270
Bareboat charter		723			724			834			1,765			1,389
Other marine services		1,348			1,729			3,771			3,188			4,153
		41,878			41,743			49,070			54,700			52,812
Costs and Expenses:
Operating:
Personnel		13,378			13,706			15,096			15,879			17,914
Repairs and maintenance		4,311			4,804			3,983			5,495			7,607
Drydocking		566			1,365			766			515			1,997
Insurance and loss reserves		1,589			939			1,663			1,198			1,763
Fuel, lubes and supplies		2,295			2,067			2,409			2,910			3,202
Other		1,774			1,739			2,061			1,214			2,887
		23,913			24,620			25,978			27,211			35,370
Direct Vessel Profit⁽¹⁾		17,965			17,123			23,092			27,489			17,442
Other Costs and Expenses:
Lease expense		1,355			3,407			3,570			4,153			4,298
Administrative and general		14,560			10,765			11,928			11,462			10,524
Depreciation and amortization		15,313			15,001			15,412			16,091			16,412
		31,228			29,173			30,910			31,706			31,234
(Losses) Gains on Asset Dispositions and Impairments, Net		(3,453	)		(12,572	)		(2,679	)		862			(3,848	)
Operating Loss		(16,716	)		(24,622	)		(10,497	)		(3,355	)		(17,640	)
Other Income (Expense):
Interest income		529			676			559			317			215
Interest expense		(6,995	)		(7,638	)		(7,397	)		(7,362	)		(7,633	)
SEACOR Holdings guarantee fees		(9	)		(16	)		(21	)		(26	)		(32	)
Derivative losses (gains), net		85			5,114			(663	)		3,057			(1,398	)
Foreign currency gains, net		(171	)		65			(1,037	)		(370	)		(924	)
Other, net		—			—			(1	)		—			—
		(6,561	)		(1,799	)		(8,560	)		(4,384	)		(9,772	)
Loss Before from Continuing Operations Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies		(23,277	)		(26,421	)		(19,057	)		(7,739	)		(27,412	)
Income Tax (Benefit) Expense		(15,081	)		(6,668	)		(2,306	)		1,277			(3,052	)
Loss from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies		(8,196	)		(19,753	)		(16,751	)		(9,016	)		(24,360	)
Equity in Losses of 50% or Less Owned Companies		2,130			(239	)		(2,425	)		(1,325	)		(7,078	)
Loss from Continuing Operations		(6,066	)		(19,992	)		(19,176	)		(10,341	)		(31,438	)
(Loss) Income from Discontinued Operations, Net of Tax		—			—			(2,742	)		(7,899	)		1,174
Net Loss		(6,066	)		(19,992	)		(21,918	)		(18,240	)		(30,264	)
Net (Loss) Income attributable to Noncontrolling Interests in Subsidiaries		7			(4,047	)		(1,463	)		204			(1,875	)
Net Loss attributable to SEACOR Marine Holdings Inc.	$	(6,073	)	$	(15,945	)	$	(20,455	)	$	(18,444	)	$	(28,389	)

Basic and Diluted Income (Loss) Per Common Share and Warrants of SEACOR Marine Holdings Inc.
Continuing operations	$	(0.24	)	$	(0.66	)	$	(0.74	)	$	(0.49	)	$	(1.31	)
Discontinued operations		—			—			(0.12	)		(0.29	)		0.10
	$	(0.24	)	$	(0.66	)	$	(0.86	)	$	(0.78	)	$	(1.21	)
Weighted Average Common Shares and Warrants Outstanding:
Basic and Diluted		24,851			23,989			23,832			23,741			23,382
Common Shares and Warrants Outstanding at Period End		24,899			24,854			23,708			23,653			23,592

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*United States, primarily Gulf of Mexico*
Time Charter Statistics:
Average rates per day worked	$	15,574		$	20,988		$	19,285		$	17,851		$	14,058
Fleet utilization		5	%		11	%		20	%		26	%		34	%
Fleet available days		1,842			1,864			1,956			2,340			2,669
Out-of-service days for repairs, maintenance and drydockings	32			116			6			159			325
Out-of-service days for cold-stacked status		1,465			1,301			1,301			1,131			1,322
Operating Revenues:
Time charter	$	1,478		$	4,375		$	7,408		$	10,914		$	12,628
Bareboat charter		723			724			732			597			233
Other marine services		513			642			516			838			1,320
		2,714			5,741			8,656			12,349			14,181
Direct Costs and Expenses:
Operating:
Personnel		2,284			2,928			3,432			4,353			5,203
Repairs and maintenance		314			617			782			1,508			2,515
Drydocking		110			1,057			252			547			1,801
Insurance and loss reserves		354			135			566			371			841
Fuel, lubes and supplies		189			524			407			739			1,107
Other		93			79			102			88			113
		3,344			5,340			5,541			7,606			11,580
Direct Vessel Profit (Loss)⁽¹⁾	$	(630	)	$	401		$	3,115		$	4,743		$	2,601
Other Costs and Expenses:
Lease expense	$	741		$	2,138		$	2,283		$	2,758		$	2,942
Depreciation and amortization		5,254			5,358			5,474			5,634			5,341

*Africa, primarily West Africa*
Time Charter Statistics:
Average rates per day worked	$	9,001		$	9,249		$	9,435		$	9,316		$	9,365
Fleet utilization		85	%		89	%		88	%		91	%		81	%
Fleet available days		1,304			1,346			1,349			1,380			1,365
Out-of-service days for repairs, maintenance and drydockings		90			56			68			—		54
Operating Revenues:
Time charter	$	9,944		$	11,095		$	11,249		$	11,738		$	10,400
Other marine services		(480	)		167			1,216			129			753
		9,464			11,262			12,465			11,867			11,153
Direct Costs and Expenses:
Operating:
Personnel		2,546			2,695			3,230			3,308			3,428
Repairs and maintenance		1,379			1,435			1,242			1,323			952
Drydocking		256			8			253			(53	)		(48	)
Insurance and loss reserves		188			193			369			230			239
Fuel, lubes and supplies		727			472			817			961			939
Other		565			571			976			499			773
		5,661			5,374			6,887			6,268			6,283
Direct Vessel Profit⁽¹⁾	$	3,803		$	5,888		$	5,578		$	5,599		$	4,870
Other Costs and Expenses:
Lease expense	$	417		$	1,126		$	757		$	761		$	787
Depreciation and amortization		2,889			2,604			2,608			2,681			2,759

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Middle East and Asia*
Time Charter Statistics:
Average rates per day worked	$	10,245		$	9,634		$	8,843		$	8,795		$	8,182
Fleet utilization		82	%		73	%		82	%		83	%		79	%
Fleet available days		1,613			1,671			1,901			2,020			2,026
Out-of-service days for repairs, maintenance and drydockings	113			200			15			129			73
Out-of-service days for cold-stacked status	61			48			153			184			115
Operating Revenues:
Time charter	$	13,605		$	11,767		$	13,840		$	14,798		$	13,175
Other marine services		514			420			678			414			349
		14,119			12,187			14,518			15,212			13,524
Direct Costs and Expenses:
Operating:
Personnel		3,795			3,811			4,129			4,023			4,292
Repairs and maintenance		1,580			1,246			973			1,387			2,629
Drydocking		200			414			146			20			275
Insurance and loss reserves		430			339			408			333			381
Fuel, lubes and supplies		955			665			769			701			725
Other		819			683			635			567			793
		7,779			7,158			7,060			7,031			9,095
Direct Vessel Profit⁽¹⁾	$	6,340		$	5,029		$	7,458		$	8,181		$	4,429
Other Costs and Expenses:
Lease expense	$	32		$	45		$	42		$	43		$	42
Depreciation and amortization		3,921			3,790			3,963			3,914			4,274

*Latin America*
Time Charter Statistics:
Average rates per day worked	$	10,752		$	9,397		$	8,649		$	6,867		$	8,074
Fleet utilization		97	%		93	%		69	%		71	%		63	%
Fleet available days		408			389			429			399			400
Out-of-service days for repairs, maintenance and drydockings		—		3			35			5			3
Out-of-service days for cold-stacked status		—			—		65			92			91
Operating Revenues:
Time charter	$	4,251		$	3,396		$	2,541		$	1,951		$	2,046
Bareboat charter		—			-			102			1,168			1,156
Other marine services		168			149			261			221			273
		4,419			3,545			2,904			3,340			3,475
Direct Costs and Expenses:
Operating:
Personnel		1,377			1,215			1,081			846			976
Repairs and maintenance		255			392			234			298			481
Drydocking		—			(114	)		114			—			(32	)
Insurance and loss reserves		105			69			79			31			66
Fuel, lubes and supplies		132			135			127			187			314
Other		123			305			188			(87	)		560
		1,992			2,002			1,823			1,275			2,365
Direct Vessel Profit⁽¹⁾	$	2,427		$	1,543		$	1,081		$	2,065		$	1,110
Other Costs and Expenses:
Lease expense	$	9		$	9		$	9		$	—		$	—
Depreciation and amortization		950			899			1,037			1,573			1,659

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY REGION (continued)
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Europe, Continuing Operations*
Time Charter Statistics:
Average rates per day worked		3,436			3,471			3,505			3,146			2,972
Fleet utilization		87	%		73	%		80	%		96	%		86	%
Fleet available days		3,521			3,398			3,373			3,439			3,530
Out-of-service days for repairs, maintenance and drydockings	117			122			107			3			159
Out-of-service days for cold-stacked status		—			—			—		92			91
Operating Revenues:
Time charter	$	10,529		$	8,657		$	9,427		$	10,346		$	9,021
Other marine services		633			351			1,100			1,586			1,458
		11,162			9,008			10,527			11,932			10,479
Direct Costs and Expenses:
Operating:
Personnel		3,376			3,057			3,224			3,349			4,015
Repairs and maintenance		783			1,114			752			979			1,030
Drydocking		—			—			1			1			1
Insurance and loss reserves		512			203			241			233			236
Fuel, lubes and supplies		292			271			289			322			117
Other		174			101			160			147			648
		5,137			4,746			4,667			5,031			6,047
Direct Vessel Profit for Continuing Operations⁽¹⁾	$	6,025		$	4,262		$	5,860		$	6,901		$	4,432
Other Costs and Expenses:
Lease expense	$	156		$	89		$	479		$	591		$	527
Depreciation and amortization		2,299			2,350			2,330			2,289			2,379

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Anchor handling towing supply*
Time Charter Statistics:
Average rates per day worked	$	8,383		$	8,012		$	8,095		$	7,790		$	7,597
Fleet utilization		43	%		39	%		48	%		53	%		49	%
Fleet available days		667			709			705			736			910
Out-of-service days for repairs, maintenance and drydockings	76			74			33			10			31
Out-of-service days for cold-stacked status	273			273			337			332			437
Operating Revenues:
Time charter	$	2,413		$	2,225		$	2,714		$	3,059		$	3,360
Other marine services		(137	)		559			1,076			365			869
		2,276			2,784			3,790			3,424			4,229
Direct Costs and Expenses:
Operating:
Personnel		853			892			1,212			1,418			2,001
Repairs and maintenance		679			408			330			524			632
Drydocking		(19	)		22			-			8			96
Insurance and loss reserves		159			45			208			179			266
Fuel, lubes and supplies		168			216			145			252			262
Other		341			259			366			404			411
		2,181			1,842			2,261			2,785			3,668
Direct Vessel Profit (Loss)⁽¹⁾	$	95		$	942		$	1,529		$	639		$	561
Other Costs and Expenses:
Lease expense	$	518		$	1,216		$	872		$	1,357		$	1,527
Depreciation and amortization		500			561			522			568			575

*Fast support*
Time Charter Statistics:
Average rates per day worked	$	8,590		$	8,472		$	8,257		$	8,133		$	7,624
Fleet utilization		72	%		76	%		78	%		78	%		71	%
Fleet available days		2,426			2,521			2,935			3,156			3,275
Out-of-service days for repairs, maintenance and drydockings	137			156			82			81			134
Out-of-service days for cold-stacked status	285			273			341			459			545
Operating Revenues:
Time charter	$	15,078		$	16,284		$	18,877		$	20,079		$	17,709
Bareboat charter		723			724			732			597			233
Other marine services		(372	)		(355	)		(40	)		(200	)		(179	)
		15,429			16,653			19,569			20,476			17,763
Direct Costs and Expenses:
Operating:
Personnel		4,166			4,659			5,071			5,486			5,796
Repairs and maintenance		1,922			2,278			1,873			2,204			2,682
Drydocking		274			36			357			(27	)		136
Insurance and loss reserves		304			332			541			347			385
Fuel, lubes and supplies		1,180			904			1,098			1,395			1,602
Other		1,203			1,000			1,346			959			1,713
		9,049			9,209			10,286			10,364			12,314
Direct Vessel Profit⁽¹⁾	$	6,380		$	7,444		$	9,283		$	10,112		$	5,449
Other Costs and Expenses:
Lease expense	$	352		$	352		$	352		$	351		$	352
Depreciation and amortization		5,405			5,118			5,447			5,646			5,929

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued)
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Supply*
Time Charter Statistics:
Average rates per day worked	$	8,477		$	7,360		$	7,179		$	6,755		$	6,906
Fleet utilization		83	%		79	%		87	%		96	%		53	%
Fleet available days		527			2,521			338			398			486
Out-of-service days for repairs, maintenance and drydockings		13			3			—			—		118
Out-of-service days for cold-stacked status		61			—			—			—			—
Operating Revenues:
Time charter	$	3,713		$	2,520		$	2,114		$	2,589		$	1,787
Bareboat charter		—			—			102			1,168			1,156
Other marine services		(53	)		(69	)		582			863			799
		3,660			2,451			2,798			4,620			3,742
Direct Costs and Expenses:
Operating:
Personnel		1,591			1,206			1,369			1,266			1,617
Repairs and maintenance		375			348			159			276			1,085
Drydocking		197			—			142			1			82
Insurance and loss reserves		106			67			65			66			78
Fuel, lubes and supplies		219			119			377			205			98
Other		246			397			314			57			842
		2,734			2,137			2,426			1,871			3,802
Direct Vessel Profit (Loss)⁽¹⁾	$	926		$	314		$	372		$	2,749		$	(60	)
Other Costs and Expenses:
Lease expense	$	—		$	—		$	381		$	517		$	433
Depreciation and amortization		1,000			787			823			1,167			1,223

*Specialty*
Time Charter Statistics:
Fleet available days		91			91			92			92			91
Out-of-service days for cold-stacked status		91			91			92			92			91
Operating Revenues:
Other marine services	$	—		$	—		$	—		$	—		$	—

Direct Costs and Expenses:
Operating:
Personnel		—			13			6			13			23
Repairs and maintenance		46			11			5			1			3
Insurance and loss reserves		16			20			9			18			20
Fuel, lubes and supplies		(2	)		22			—			2			(24	)
Other		67			101			64			75			77
		127			167			84			109			99
Direct Vessel Loss⁽¹⁾	$	(127	)	$	(167	)	$	(84	)	$	(109	)	$	(99	)
Other Costs and Expenses:
Operating:
Depreciation and amortization	$	127		$	128		$	128		$	128		$	127

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued)
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Liftboats*
Time Charter Statistics:
Average rates per day worked	$	24,894		$	27,513		$	27,453		$	26,172		$	20,993
Fleet utilization		30	%		31	%		36	%		39	%		47	%
Fleet available days		1,456			1,456			1,472			1,665			1,729
Out-of-service days for repairs, maintenance and drydockings	9			141			6			153			292
Out-of-service days for cold-stacked status		816			664			657			432			455
Operating Revenues:
Time charter	$	11,001		$	12,339		$	14,375		$	16,830		$	16,932
Other marine services		306			250			732			795			1,481
		11,307			12,589			15,107			17,625			18,413
Direct Costs and Expenses:
Operating:
Personnel		3,545			4,097			4,588			4,824			5,360
Repairs and maintenance		407			650			776			1,656			2,189
Drydocking		111			1,307			267			532			1,683
Insurance and loss reserves		893			679			711			484			921
Fuel, lubes and supplies		343			490			550			899			1,076
Other		219			147			338			221			251
		5,518			7,370			7,230			8,616			11,480
Direct Vessel Profit⁽¹⁾	$	5,789		$	5,219		$	7,877		$	9,009		$	6,933
Other Costs and Expenses:
Lease expense	$	44		$	1,497		$	1,497		$	1,498		$	1,497
Depreciation and amortization		6,081			6,128			6,136			6,247			6,055

*Crew transfer*
Time Charter Statistics:
Average rates per day worked	$	2,481		$	2,375		$	2,378		$	2,220		$	2,431
Fleet utilization		87	%		72	%		77	%		92	%		88	%
Fleet available days		3,521			3,458			3,465			3,531			3,499
Out-of-service days for repairs, maintenance and drydockings	117			122			111			52			39
Out-of-service days for cold-stacked status		—			48			92			184			91
Operating Revenues:
Time charter	$	7,602		$	5,922		$	6,385		$	7,190		$	7,482
Other marine services		548			315			389			577			499
		8,150			6,237			6,774			7,767			7,981
Direct Costs and Expenses:
Operating:
Personnel		2,721			2,592			2,435			2,432			2,665
Repairs and maintenance		754			1,056			693			775			933
Drydocking		3			—			—			—			—
Insurance and loss reserves		100			99			124			113			93
Fuel, lubes and supplies		230			230			220			152			167
Other		115			86			75			96			113
		3,923			4,063			3,547			3,568			3,971
Direct Vessel Profit⁽¹⁾	$	4,227		$	2,174		$	3,227		$	4,199		$	4,010
Other Costs and Expenses:
Lease expense	$	67		$	-		$	-		$	-		$	-
Depreciation and amortization		1,637			1,717			1,837			1,819			1,920

SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY VESSEL CLASS (continued)
(in thousands, except statistics)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
*Other Activity*
Operating Revenues:
Other marine services	$	1,056		$	1,029		$	1,032		$	788		$	684
		1,056			1,029			1,032			788			684
Direct Costs and Expenses:
Operating:
Personnel		502			247			415			440			452
Repairs and maintenance		128			53			147			59			83
Insurance and loss reserves		11			(303	)		5			(9	)		—
Fuel, lubes and supplies		157			86			19			5			21
Other		(417	)		(251	)		(442	)		(598	)		(520	)
		381			(168	)		144			(102	)		36
Direct Vessel Profit⁽¹⁾	$	675		$	1,197		$	888		$	890		$	648
Other Costs and Expenses:
Lease expense	$	374		$	342		$	468		$	430		$	489
Depreciation and amortization		563			562			519			516			583

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)
(in thousands)

	Three Months Ended
	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
Cash Flows from Continuing Operating Activities:
DVP ⁽¹⁾		17,965			17,123			23,092			27,489			17,442
Operating, leased-in equipment (excluding amortization of deferred gains)		(3,814	)		(3,838	)		(4,648	)		(4,963	)		(4,886	)
Administrative and general (excluding provisions for bad debts and amortization of share awards)		(13,352	)		(9,776	)		(10,773	)		(9,160	)		(9,696	)
SEACOR Holdings management and guarantee fees		(9	)		(16	)		(21	)		(26	)		(32	)
Dividends received from 50% or less owned companies		—			—			800			873			—
Other, net (excluding non-cash losses)		—			—			(2	)		—			—
		790			3,493			8,448			14,213			2,828
Changes in operating assets and liabilities before interest and income taxes		(9,293	)		(7,144	)		7,758			(7,236	)		4,921
Director share awards		755			—			—			—			894
Restricted stock vested		(3	)		(175	)		(55	)		(240	)		—
Cash settlements on derivative transactions, net		(279	)		(214	)		(190	)		(546	)		275
Interest paid, excluding capitalized interest ⁽¹⁾		(4,529	)		(4,744	)		(6,255	)		(5,633	)		(5,971	)
Interest received		529			676			560			316			215
Income taxes refunded, net		—			—			—			—			—
Net cash (used in) provided operating activities		(12,030	)		(8,108	)		10,266			874			3,162
Cash Flows from Continuing Investing Activities:
Purchases of property and equipment		(8,530	)		(11,244	)		(5,890	)		(9,547	)		(19,386	)
Proceeds from disposition of property and equipment		14,030			3,105			36,418			10,119			9,268
Proceeds from the sale of ERRV fleet		—			—			27,390			—			—
Cash Impact of sale of ERRV fleet		—			—			(5,140	)		—			—
Construction reserve funds transferred to short-term cash		3,745			—			—			—			—
Purchase of subsidiary from joint venture		(8,445	)		—			—			—			—
Construction reserve funds used		—			9,148			5,268			1,951			7,997
Net investing activities in property and equipment		800			1,009			58,046			2,523			(2,121	)
Investments in and advances to 50% or less owned companies		(56	)		(245	)		(6,062	)		(8,686	)		(718	)
Capital distributions from equity investees		—			—			48			413			—
Principal payments on notes due from equity investees		—			—			—			22			—
Net cash provided by (used in) investing activities		744			764			52,032			(5,728	)		(2,839	)
Cash Flows from Continuing Financing Activities:
Payments on long-term debt		(3,502	)		(5,222	)		(3,899	)		(11,976	)		(3,738	)
Purchase of subsidiary shares from noncontrolling interests		—			—			—			—			—
Proceeds from exercise of stock options and Warrants		—			—			340			973			3
Net cash (used in) provided by financing activities		(3,502	)		(5,222	)		(3,559	)		(11,003	)		(3,735	)
Effects of Exchange Rate Changes on Cash and Cash Equivalents		265			(1,908	)		(19,238	)		(472	)		1,195
Net Change in Cash, Cash Equivalents and Restricted Cash		(14,523	)		(14,474	)		39,501			(16,329	)		(2,217	)
Cash Flows from Discontinued Operations
Operating Activities		—			—			4,297			(446	)		(747	)
Investing Activities		—			—			(4,462	)		(116	)		(615	)
Effects of FX Rate Changes on Cash and Cash Equivalents		—			—			3,322			268			(1,504	)
Net Decrease in Cash and Cash Equivalents from Discontinued Operations:		—			—			3,157			(294	)		(2,866	)
Net Change in Cash, Cash Equivalents and Restricted Cash		(14,523	)		(14,474	)		42,658			(16,623	)		(5,083	)
Cash, Restricted Cash and Cash Equivalents, Beginning of Period		72,573			87,047			44,389			61,012			66,095
Cash, Restricted Cash and Cash Equivalents, End of Period	$	58,050		$	72,573		$	87,047		$	44,389		$	61,012

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	Jun. 30, 2020			Mar. 31, 2020			Dec. 31, 2019			Sep. 30, 2019			Jun. 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	54,698		$	69,220		$	83,943		$	38,155		$	55,763
Restricted cash		3,352			3,353			3,104			4,016			2,240
Receivables:
Trade, net of allowance for doubtful accounts		57,892			48,192			49,128			58,954			60,711
Other		14,362			27,872			18,531			6,835			9,682
Receivables from SEACOR Holdings		14,394			—			—			—			—
Inventories		1,409			1,575			1,228			1,408			1,660
Prepaid expenses and other		3,218			2,653			2,612			3,146			3,710
Discontinued operations		—			—			—			13,127			13,891
Total current assets		149,325			152,865			158,546			125,641			147,657
Property and Equipment:
Historical cost		1,066,239			930,264			976,978			1,063,290			1,099,221
Accumulated depreciation		(322,378	)		(312,911	)		(358,962	)		(400,628	)		(425,881	)
		743,861			617,353			618,016			662,662			673,340
Construction in progress		55,955			55,302			74,344			70,275			67,063
Net property and equipment		799,816			672,655			692,360			732,937			740,403
Right-of-Use Asset - Operating Leases		8,818			8,990			17,313			18,774			27,390
Investments, at Equity, and Advances to 50% or Less Owned Companies		90,900			125,010			124,680			118,222			112,418
Construction Reserve Funds		—			3,745			12,893			18,161			20,112
Other Assets		3,243			3,270			3,401			3,422			3,627
Discontinued operations		—			—			—			23,349			25,092
	$	1,052,102		$	966,535		$	1,009,193		$	1,040,506		$	1,076,699
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities	$	11,765		$	13,359		$	15,099		$	15,182		$	16,552
Current portion of long-term debt		51,793			37,084			17,802			23,446			20,651
Accounts payable and accrued expenses		22,382			32,023			25,691			26,507			31,504
Due to SEACOR Holdings		—			66			74			77			74
Other current liabilities		30,162			29,949			36,151			42,372			47,185
Discontinued operations		—			—			—			3,813			3,813
Total current liabilities		116,102			112,481			94,817			111,397			119,779
Long-Term Operating Lease Liabilities		6,545			7,859			9,822			12,878			16,775
Long-Term Debt		447,663			356,729			380,251			375,772			379,075
Conversion Option Liability on Convertible Senior Notes		6			91			5,205			4,543			7,599
Deferred Income Taxes		24,101			26,113			33,905			36,921			37,066
Deferred Gains and Other Liabilities		6,321			7,951			6,269			4,848			5,165
Total liabilities		600,738			511,224			530,269			546,359			565,459
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock		232			231			219			219			218
Additional paid-in capital		449,116			447,425			429,318			427,823			424,549
Retained earnings		5,058			11,131			27,076			64,929			83,312
Shares held in treasury		(847	)		(844	)		(669	)		(614	)		(374	)
Accumulated other comprehensive loss, net of tax		(2,541	)		(2,971	)		1,548			(21,105	)		(19,156	)
		451,018			454,972			457,492			471,252			488,549
Noncontrolling interests in subsidiaries		346			339			21,432			22,895			22,691
Total equity		451,364			455,311			478,924			494,147			511,240
	$	1,052,102		$	966,535		$	1,009,193		$	1,040,506		$	1,076,699

SEACOR MARINE HOLDINGS INC.
UNAUDITED FLEET COUNTS

	Owned		Joint Ventured		Leased-in		Managed		Total
June 30, 2020
AHTS		4		—		3		—		7
FSV		26		5		1		1		33
Supply		13		27		—		2		42
Specialty		1		3		—		—		4
Liftboats		14		—		2		—		16
Crew transfer		39		5		—		—		44
		97		40		6		3		146
March 31, 2020
AHTS		4		—		4		—		8
FSV		28		5		1		1		35
Supply		5		34		—		2		41
Specialty		1		3		—		—		4
Liftboats		14		—		2		—		16
Crew transfer		38		5		—		—		43
		90		47		7		3		147

Source: SEACOR Marine Holdings Inc.

Press Release Details

Seacor Marine Announces Second Quarter 2020 Results