SEACOR Marine Announces First Quarter 2022 Results

SEACOR Marine Holdings Inc.

HOUSTON, May 04, 2022 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its first quarter ended March 31, 2022.

SEACOR Marine’s consolidated operating revenues from continuing operations for the first quarter of 2022 were $45.6 million, operating loss was $17.1 million, and direct vessel profit (“DVP”)⁽¹⁾ was $6.1 million. This compares to consolidated operating revenues from continuing operations of $36.5 million, operating loss of $16.6 million, and DVP of $10.2 million in the first quarter of 2021.

Notable first quarter items include:

• Average utilization rates of 70%, the highest for our seasonally low first quarter since 2014.

• 25% improvement in revenues compared to the first quarter of 2021.

• Increases in drydocking and major repairs of 60% from the fourth quarter of 2021 to prepare fleet for increasing activity levels.
  

For the first quarter of 2022, net loss from continuing operations was $14.8 million ($0.56 loss per basic and diluted share). This compares to a net loss from continuing operations for the first quarter of 2021 of $16.9 million ($0.67 loss per basic and diluted share). Sequentially, first quarter 2022 results compare to consolidated operating revenues from continuing operations of $48.0 million, operating loss from continuing operations of $14.7 million, and DVP of $12.9 million in the fourth quarter of 2021. For the fourth quarter of 2021, net loss from continuing operations was $15.8 million ($0.62 loss per basic and diluted share).

Chief Executive Officer John Gellert commented:

“Demand for our services remains strong and we expect that our strategy will generate positive operating cash flows as the year progresses. The first quarter results reflect our strategy of preparing and positioning our fleet during the seasonally low months of the year to participate fully in the market up-cycle. As a result, we had a substantial increase in drydocking and repair and maintenance expenses, which resulted in our DVP being down relative to prior quarters since we expense these items as incurred.”
___________________

(1

)

Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global 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 energy 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 InvestorRelations@seacormarine.com

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

		Three Months Ended March 31,
		2022				2021
Operating Revenues		$	45,591			$	36,512
Costs and Expenses:
Operating			39,496				26,307
Administrative and general			9,924				8,611
Lease expense			1,060				1,078
Depreciation and amortization			14,371				14,798
			64,851				50,794
Gains (Losses) on Asset Dispositions and Impairments, Net			2,139				(2,273	)
Operating (Loss)			(17,121	)			(16,555	)
Other Income (Expense):
Interest income			29				986
Interest expense			(6,627	)			(8,018	)
SEACOR Holdings guarantee fees			—				(7	)
Derivative (losses) gains, net			(34	)			355
Foreign currency gains (losses), net			821				(466	)
			(5,811	)			(7,150	)
Loss from Continuing Operations Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies			(22,932	)			(23,705	)
Income Tax Benefit			(2,421	)			(2,688	)
Loss from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies			(20,511	)			(21,017	)
Equity in Earnings Gains of 50% or Less Owned Companies			5,674				4,103
Loss from Continuing Operations			(14,837	)			(16,914	)
Income on Discontinued Operations, Net of Tax (Includes Gain on the Sale of Windcat Workboats of $22,756)			—				22,925
Net (Loss) Income			(14,837	)			6,011
Net Income Attributable to Noncontrolling Interests in Subsidiaries			—				—
Net (Loss) Income Attributable to SEACOR Marine Holdings Inc.		$	(14,837	)		$	6,011
Net Loss Per Common Share from Continuing Operations:
Basic		$	(0.56	)		$	(0.67	)
Diluted			(0.56	)			(0.67	)
Net Earnings Per Share from Discontinued Operations:
Basic		$	—			$	0.91
Diluted			—				0.91
Net (Loss) Earnings per Share:
Basic		$	(0.56	)		$	0.24
Diluted		$	(0.56	)		$	0.24
Weighted Average Common Stock and Warrants Outstanding:
Basic			26,379,293				25,304,661
Diluted			26,379,293				25,304,661

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

		Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Mar. 31, 2021
Time Charter Statistics:
Average Rates Per Day		$	11,312			$	11,376			$	12,120			$	12,007			$	11,323
Fleet Utilization			70	%			73	%			68	%			67	%			55	%
Fleet Available Days			5,400				5,060				5,108				5,177				5,505
Operating Revenues:
Time charter		$	42,741			$	42,289			$	41,782			$	41,474			$	34,290
Bareboat charter			618				2,870				—				434				729
Other marine services			2,232				2,808				1,881				891				1,493
			45,591				47,967				43,663				42,799				36,512
Costs and Expenses:
Operating:
Personnel			18,435				17,098				15,051				14,353				13,418
Repairs and maintenance			6,791				6,782				6,536				6,959				3,840
Drydocking			4,973				567				771				2,792				2,217
Insurance and loss reserves			1,186				1,859				2,189				2,661				1,958
Fuel, lubes and supplies			3,729				3,254				3,684				2,893				2,202
Other			4,382				5,476				5,217				2,957				2,672
			39,496				35,036				33,448				32,615				26,307
Direct Vessel Profit (1)			6,095				12,931				10,215				10,184				10,205
Other Costs and Expenses:
Lease expense			1,060				2,664				1,109				1,234				1,078
Administrative and general			9,924				10,742				9,134				9,152				8,611
Depreciation and amortization			14,371				14,198				14,306				14,093				14,798
			25,355				27,604				24,549				24,479				24,487
Gains (Losses) on Asset Dispositions and Impairments, Net			2,139				—				56				22,653				(2,273	)
Operating (Loss) Income			(17,121	)			(14,673	)			(14,278	)			8,358				(16,555	)
Other Income (Expense):
Interest income			29				57				124				135				986
Interest expense			(6,627	)			(6,380	)			(6,403	)			(7,310	)			(8,018	)
SEACOR Holdings guarantee fees			—				—				—				—				(7	)
Derivative (losses) gains, net			(34	)			4				2				30				355
Gain on debt extinguishment			—				—				—				61,994				—
Foreign currency gains (losses), net			821				(357	)			245				(657	)			(466	)
Gain (Loss) from return of investments in 50% or less owned companies and other, net			—				—				9,442				(1	)			—
			(5,811	)			(6,676	)			3,410				54,191				(7,150	)
(Loss) Income from Continuing Operations Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies			(22,932	)			(21,349	)			(10,868	)			62,549				(23,705	)
Income Tax (Benefit) Expense			(2,421	)			(1,009	)			(725	)			15,915				(2,688	)
(Loss) Income from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies			(20,511	)			(20,340	)			(10,143	)			46,634				(21,017	)
Equity in Earnings Gains of 50% or Less Owned Companies			5,674				4,494				4,314				2,167				4,103
(Loss) Income from Continuing Operations			(14,837	)			(15,846	)			(5,829	)			48,801				(16,914	)
Income on Discontinued Operations, Net of Tax (Includes Gain on the Sale of Windcat Workboats of $22,756)			—				—				—				—				22,925
Net (Loss) Income			(14,837	)			(15,846	)			(5,829	)			48,801				6,011
Net Income Attributable to Noncontrolling Interests in Subsidiaries			—				—				—				1				—
Net (Loss) Income Attributable to SEACOR Marine Holdings Inc.		$	(14,837	)		$	(15,846	)		$	(5,829	)		$	48,800			$	6,011
Net (Loss) Earnings Per Common Share from Continuing Operations:
Basic		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.92			$	(0.67	)
Diluted			(0.56	)			(0.62	)			(0.23	)			1.79				(0.67	)
Net Earnings Per Share from Discontinued Operations:
Basic		$	—			$	—			$	—			$	—			$	0.91
Diluted			—				—				—				—				0.91
Net (Loss) Earnings per Share:
Basic		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.92			$	0.24
Diluted		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.79			$	0.24
Weighted Average Common Stock and Warrants Outstanding:
Basic			26,379				25,520				25,516				25,435				25,305
Diluted			26,379				25,520				25,516				28,345				25,305
Common Shares and Warrants Outstanding at Period End			28,083				27,432				25,864				25,869				25,683

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

		Three Months Ended
		Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Mar. 31, 2021
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked		$	15,595			$	15,496			$	18,702			$	17,058			$	15,910
Fleet utilization			38	%			33	%			27	%			18	%			6	%
Fleet available days			1,314				1,043				1,062				1,112				1,518
Out-of-service days for repairs, maintenance and drydockings			205				95				246				137				67
Out-of-service days for cold-stacked status			404				399				469				748				1,270
Operating Revenues:
Time charter		$	7,864			$	5,290			$	5,289			$	3,419			$	1,489
Bareboat charter			—				386				—				434				729
Other marine services			2,052				1,119				1,215				727				546
			9,916				6,795				6,504				4,580				2,764
Direct Costs and Expenses:
Operating:
Personnel		$	4,923			$	3,136			$	2,428			$	1,528			$	1,744
Repairs and maintenance			1,101				1,085				1,266				389				654
Drydocking			2,867				191				239				777				875
Insurance and loss reserves			229				720				462				923				527
Fuel, lubes and supplies			662				501				259				245				199
Other			224				200				147				224				77
			10,006				5,833				4,801				4,086				4,076
Direct Vessel (Loss) Profit (1)		$	(90	)		$	962			$	1,703			$	494			$	(1,312	)
Other Costs and Expenses:
Lease expense		$	287			$	633			$	621			$	703			$	664
Depreciation and amortization			4,638				4,325				3,936				3,287				4,164
Africa and Europe, Continuing Operations
Time Charter Statistics:
Average rates per day worked		$	10,006			$	9,530			$	9,551			$	11,231			$	11,356
Fleet utilization			82	%			88	%			77	%			75	%			68	%
Fleet available days			1,499				1,411				1,417				1,365				1,356
Out-of-service days for repairs, maintenance and drydockings			163				79				52				65				78
Out-of-service days for cold-stacked status			—				—				29				176				346
Operating Revenues:
Time charter		$	12,280			$	11,883			$	10,446			$	11,437			$	10,502
Bareboat charter			—				—				—				—				—
Other marine services			(616	)			(416	)			(429	)			(224	)			(269	)
			11,664				11,467				10,017				11,213				10,233
Direct Costs and Expenses:
Operating:
Personnel		$	3,536			$	3,283			$	3,147			$	4,253			$	3,220
Repairs and maintenance			1,579				1,846				1,540				2,195				1,191
Drydocking			1,144				144				337				374				304
Insurance and loss reserves			124				245				323				352				433
Fuel, lubes and supplies			1,473				1,019				1,631				887				572
Other			1,828				1,740				1,424				2,072				579
			9,684				8,277				8,402				10,133				6,299
Direct Vessel Profit (1)		$	1,980			$	3,190			$	1,615			$	1,080			$	3,934
Other Costs and Expenses:
Lease expense		$	402			$	371			$	284			$	270			$	356
Depreciation and amortization			3,258				2,948				3,296				3,305				3,307

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

		Three Months Ended
		Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Mar. 31, 2021
Middle East and Asia
Time Charter Statistics:
Average rates per day worked		$	9,882			$	9,612			$	10,374			$	9,292			$	9,308
Fleet utilization			77	%			81	%			73	%			81	%			73	%
Fleet available days			1,800				1,717				1,780				1,820				1,852
Out-of-service days for repairs, maintenance and drydockings			153				38				134				105				115
Out-of-service days for cold-stacked status			90				178				214				116				239
Operating Revenues:
Time charter		$	13,660			$	13,402			$	13,417			$	13,752			$	12,575
Other marine services			49				50				85				31				360
			13,709				13,452				13,502				13,783				12,935
Direct Costs and Expenses:
Operating:
Personnel		$	6,031			$	5,756			$	5,849			$	5,378			$	5,208
Repairs and maintenance			1,832				1,382				1,610				2,806				903
Drydocking			962				232				156				1,185				1,066
Insurance and loss reserves			507				611				707				461				702
Fuel, lubes and supplies			1,010				1,042				777				1,081				559
Other			1,627				2,148				2,823				43				1,144
			11,969				11,171				11,922				10,954				9,582
Direct Vessel Profit (1)		$	1,740			$	2,281			$	1,580			$	2,829			$	3,353
Other Costs and Expenses:
Lease expense		$	31			$	38			$	377			$	35			$	22
Depreciation and amortization			4,345				4,156				4,456				4,663				4,710
Latin America
Time Charter Statistics:
Average rates per day worked		$	13,450			$	15,944			$	16,240			$	17,034			$	14,751
Fleet utilization			85	%			83	%			92	%			86	%			85	%
Fleet available days			787				889				849				880				779
Out-of-service days for repairs, maintenance and drydockings			59				113				58				117				94
Operating Revenues:
Time charter		$	8,937			$	11,714			$	12,630			$	12,866			$	9,724
Bareboat charter			618				2,484				—				—				—
Other marine services			747				2,055				1,010				357				856
			10,302				16,253				13,640				13,223				10,580
Direct Costs and Expenses:
Operating:
Personnel		$	3,945			$	4,923			$	3,627			$	3,194			$	3,246
Repairs and maintenance			2,279				2,469				2,120				1,569				1,092
Drydocking			—				—				39				456				(28	)
Insurance and loss reserves			326				283				697				925				296
Fuel, lubes and supplies			584				692				1,017				680				872
Other			703				1,388				823				618				872
			7,837				9,755				8,323				7,442				6,350
Direct Vessel Profit (1)		$	2,465			$	6,498			$	5,317			$	5,781			$	4,230
Other Costs and Expenses:
Lease expense		$	340			$	1,622			$	(173	)		$	226			$	36
'Depreciation and amortization			2,130				2,769				2,618				2,838				2,617

SEACOR MARINE HOLDINGS INC.
UNAUDITED PERFORMANCE BY VESSEL CLASS
(in thousands, except statistics)

		Three Months Ended
		Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Mar. 31, 2021
Anchor handling towing supply
Time Charter Statistics:
Average rates per day worked		$	8,908			$	8,069			$	14,346			$	11,268			$	7,778
Fleet utilization			66	%			66	%			66	%			59	%			67	%
Fleet available days			540				552				552				546				540
Out-of-service days for repairs, maintenance and drydockings			2				14				61				105				—
Out-of-service days for cold-stacked status			180				92				92				118				180
Operating Revenues:
Time charter		$	3,188			$	2,926			$	5,224			$	3,640			$	2,801
Other marine services			(160	)			(129	)			(151	)			(157	)			(130	)
			3,028				2,797				5,073				3,483				2,671
Direct Costs and Expenses:
Operating:
Personnel		$	1,136			$	1,389			$	1,584			$	1,513			$	984
Repairs and maintenance			293				608				1,044				471				241
Drydocking			(7	)			1				(217	)			1,322				54
Insurance and loss reserves			(137	)			148				193				99				194
Fuel, lubes and supplies			144				321				388				344				139
Other			439				556				408				444				270
			1,868				3,023				3,400				4,193				1,882
Other Costs and Expenses:
Lease expense		$	449			$	353			$	354			$	362			$	400
Depreciation and amortization			494				495				494				495				494
Fast support
Time Charter Statistics:
Average rates per day worked		$	8,621			$	8,464			$	8,455			$	7,962			$	7,888
Fleet utilization			80	%			79	%			70	%			71	%			61	%
Fleet available days			2,160				2,208				2,208				2,100				2,207
Out-of-service days for repairs, maintenance and drydockings			167				137				300				226				182
Out-of-service days for cold-stacked status			90				92				178				314				584
Operating Revenues:
Time charter		$	14,900			$	14,857			$	13,007			$	11,827			$	10,657
Bareboat charter			—				386				—				434				729
Other marine services			(254	)			(380	)			(121	)			(249	)			(218	)
			14,646				14,863				12,886				12,012				11,168
Direct Costs and Expenses: