SEACOR Marine Announces Second Quarter 2022 Results

SEACOR Marine Holdings Inc.

HOUSTON, Aug. 03, 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 second quarter ended June 30, 2022.

SEACOR Marine’s consolidated operating revenues for the second quarter of 2022 were $54.0 million, operating loss was $15.5 million, and direct vessel profit (“DVP”)⁽¹⁾ was $9.9 million. This compares to consolidated operating revenues of $42.8 million, operating income of $8.4 million, and DVP of $10.2 million in the second quarter of 2021 and operating revenues of $45.6 million, operating loss of $17.1 million, and DVP of $6.1 million in the first quarter of 2022.

Notable second quarter items include:

• Average utilization rates of 77%, the highest since the second quarter of 2014.

• 26% improvement in revenues compared to the second quarter of 2021 and 18% improvement from the first quarter of 2022.

• 151% increase in dry docking and major repairs compared to the second quarter of 2021 and 44% increase from the first quarter of 2022.
  

For the second quarter of 2022, net loss from continuing operations was $19.1 million ($0.72 loss per basic and diluted share). This compares to a net income from continuing operations for the second quarter of 2021 of $48.8 million ($1.92 earnings per basic share and $1.79 earnings per diluted share), which included gains realized in connection with the Falcon Global debt payoff transaction and asset dispositions in the second quarter of 2021. Excluding such gains and the related tax effect, net loss from continuing operations would have been $18.1 million in the second quarter of 2021. Sequentially, second quarter 2022 results compare to consolidated operating revenues of $45.6 million, operating loss of $17.1 million, and DVP of $6.1 million in the first quarter of 2022. For the first quarter of 2022, net loss from continuing operations was $14.8 million ($0.56 loss per basic and diluted share).

Chief Executive Officer John Gellert commented:

“Our results for the second quarter demonstrate the continued progress we have been making in increasing revenues, utilization and average dayrates, reflecting the continued buildup of demand for our services. The flat average dayrates and modest DVP result of $9.9 million were driven by the impact of having multiple vessels in drydock and/or repairs for extended periods of time. These ongoing efforts included three of our largest liftboats, which were a large portion of the 318 revenue days lost to repairs or drydocking in our liftboat fleet during the quarter.

Excluding major repairs and drydocking expenses in both periods, the fleet had a 32% improvement in DVP compared to the second quarter of 2021. We expect our overall financial performance to continue improving as repairs for these large liftboats and regulatory inspection cycle are completed, which should place us in a timely position to participate in attractive contracting opportunities.” ___________________

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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. 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 June 30,								Six months ended June 30,
		2022				2021				2022				2021
Operating Revenues		$	54,017			$	42,799			$	99,608			$	79,311
Costs and Expenses:
Operating			44,145				32,615				83,641				58,922
Administrative and general			10,210				9,152				20,134				17,763
Lease expense			1,008				1,234				2,068				2,312
Depreciation and amortization			14,208				14,093				28,579				28,891
			69,571				57,094				134,422				107,888
Gains on Asset Dispositions and Impairments, Net			25				22,653				2,164				20,380
Operating (Loss) Income			(15,529	)			8,358				(32,650	)			(8,197	)
Other Income (Expense):
Interest income			190				135				219				1,121
Interest expense			(6,989	)			(7,310	)			(13,616	)			(15,328	)
SEACOR Holdings guarantee fees			—				—				—				(7	)
Gain on debt extinguishment			—				61,994				—				61,994
Derivative gains (losses), net			33				30				(1	)			385
Foreign currency gains (losses), net			1,170				(657	)			1,991				(1,123	)
Other, net			(41	)			(1	)			(41	)			(1	)
			(5,637	)			54,191				(11,448	)			47,041
(Loss) Income from Continuing Operations Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies			(21,166	)			62,549				(44,098	)			38,844
Income Tax (Benefit) Expense			(1,634	)			15,915				(4,055	)			13,227
(Loss) Income from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies			(19,532	)			46,634				(40,043	)			25,617
Equity in Earnings Gains of 50% or Less Owned Companies			415				2,167				6,089				6,270
(Loss) Income from Continuing Operations			(19,117	)			48,801				(33,954	)			31,887
Income on Discontinued Operations, Net of Tax (Includes Gain on the Sale of Windcat Workboats of $22,756)			—				—				—				22,925
Net (Loss) Income			(19,117	)			48,801				(33,954	)			54,812
Net Income Attributable to Noncontrolling Interests in Subsidiaries			3				1				3				1
Net (Loss) Income Attributable to SEACOR Marine Holdings Inc.		$	(19,120	)		$	48,800			$	(33,957	)		$	54,811
Net (Loss) Income Per Common Share from Continuing Operations:
Basic		$	(0.72	)		$	1.92			$	(1.28	)		$	1.26
Diluted			(0.72	)			1.79				(1.28	)			1.26
Net Earnings Per Share from Discontinued Operations:
Basic		$	—			$	—			$	—			$	0.90
Diluted			—				—				—				0.90
Net (Loss) Earnings per Share:
Basic		$	(0.72	)		$	1.92			$	(1.28	)		$	2.16
Diluted		$	(0.72	)		$	1.79			$	(1.28	)		$	2.16
Weighted Average Common Stock and Warrants Outstanding:
Basic			26,664,745				25,435,362				26,522,808				25,370,372
Diluted			26,664,745				28,345,155				26,522,808				25,371,185

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

		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Time Charter Statistics:
Average Rates Per Day		$	12,149			$	11,312			$	11,376			$	12,120			$	12,007
Fleet Utilization			77	%			70	%			73	%			68	%			67	%
Fleet Available Days			5,311				5,400				5,060				5,108				5,177
Operating Revenues:
Time charter		$	49,504			$	42,741			$	42,289			$	41,782			$	41,474
Bareboat charter			48				618				2,870				—				434
Other marine services			4,465				2,232				2,808				1,881				891
			54,017				45,591				47,967				43,663				42,799
Costs and Expenses:
Operating:
Personnel			18,346				18,435				17,098				15,051				14,353
Repairs and maintenance			8,380				6,791				6,782				6,536				6,959
Drydocking			6,474				4,973				567				771				2,792
Insurance and loss reserves			2,545				1,186				1,859				2,189				2,661
Fuel, lubes and supplies			4,350				3,729				3,254				3,684				2,893
Other			4,050				4,382				5,476				5,217				2,957
			44,145				39,496				35,036				33,448				32,615
Direct Vessel Profit (1)			9,872				6,095				12,931				10,215				10,184
Other Costs and Expenses:
Lease expense			1,008				1,060				2,664				1,109				1,234
Administrative and general			10,210				9,924				10,742				9,134				9,152
Depreciation and amortization			14,208				14,371				14,198				14,306				14,093
			25,426				25,355				27,604				24,549				24,479
Gains on Asset Dispositions and Impairments, Net			25				2,139				—				56				22,653
Operating (Loss) Income			(15,529	)			(17,121	)			(14,673	)			(14,278	)			8,358
Other Income (Expense):
Interest income			190				29				57				124				135
Interest expense			(6,989	)			(6,627	)			(6,380	)			(6,403	)			(7,310	)
Derivative gains (losses), net			33				(34	)			4				2				30
Gain on debt extinguishment			—				—				—				—				61,994
Foreign currency gains (losses), net			1,170				821				(357	)			245				(657	)
(Loss) Gain from return of investments in 50% or less owned companies and other, net			(41	)			—				—				9,442				(1	)
			(5,637	)			(5,811	)			(6,676	)			3,410				54,191
(Loss) Income from Continuing Operations Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies			(21,166	)			(22,932	)			(21,349	)			(10,868	)			62,549
Income Tax (Benefit) Expense			(1,634	)			(2,421	)			(1,009	)			(725	)			15,915
(Loss) Income from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies			(19,532	)			(20,511	)			(20,340	)			(10,143	)			46,634
Equity in Earnings Gains of 50% or Less Owned Companies			415				5,674				4,494				4,314				2,167
(Loss) Income from Continuing Operations			(19,117	)			(14,837	)			(15,846	)			(5,829	)			48,801
Net (Loss) Income			(19,117	)			(14,837	)			(15,846	)			(5,829	)			48,801
Net Income Attributable to Noncontrolling Interests in Subsidiaries			3				—				—				—				1
Net (Loss) Income Attributable to SEACOR Marine Holdings Inc.		$	(19,120	)		$	(14,837	)		$	(15,846	)		$	(5,829	)		$	48,800
Net (Loss) Earnings Per Common Share from Continuing Operations:
Basic		$	(0.72	)		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.92
Diluted			(0.72	)			(0.56	)			(0.62	)			(0.23	)			1.79
Net (Loss) Earnings per Share:
Basic		$	(0.72	)		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.92
Diluted		$	(0.72	)		$	(0.56	)		$	(0.62	)		$	(0.23	)		$	1.79
Weighted Average Common Stock and Warrants Outstanding:
Basic			26,665				26,379				25,520				25,516				25,435
Diluted			26,665				26,379				25,520				25,516				28,345
Common Shares and Warrants Outstanding at Period End			28,145				28,083				27,432				25,864				25,869

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

		Three Months Ended
		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked		$	17,792			$	15,595			$	15,496			$	18,702			$	17,058
Fleet utilization			43	%			38	%			33	%			27	%			18	%
Fleet available days			1,277				1,314				1,043				1,062				1,112
Out-of-service days for repairs, maintenance and drydockings			284				205				95				246				137
Out-of-service days for cold-stacked status			313				404				399				469				748
Operating Revenues:
Time charter		$	9,759			$	7,864			$	5,290			$	5,289			$	3,419
Bareboat charter			—				—				386				—				434
Other marine services			2,399				2,052				1,119				1,215				727
			12,158				9,916				6,795				6,504				4,580
Direct Costs and Expenses:
Operating:
Personnel		$	5,773			$	4,923			$	3,136			$	2,428			$	1,528
Repairs and maintenance			1,280				1,101				1,085				1,266				389
Drydocking			4,090				2,867				191				239				777
Insurance and loss reserves			1,198				229				720				462				923
Fuel, lubes and supplies			794				662				501				259				245
Other			281				224				200				147				224
			13,416				10,006				5,833				4,801				4,086
Direct Vessel (Loss) Profit (1)		$	(1,258	)		$	(90	)		$	962			$	1,703			$	494
Other Costs and Expenses:
Lease expense		$	295			$	287			$	633			$	621			$	703
Depreciation and amortization			4,562				4,638				4,325				3,936				3,287
Africa and Europe, Continuing Operations
Time Charter Statistics:
Average rates per day worked		$	11,279			$	10,006			$	9,530			$	9,551			$	11,231
Fleet utilization			85	%			82	%			88	%			77	%			75	%
Fleet available days			1,567				1,499				1,411				1,417				1,365
Out-of-service days for repairs, maintenance and drydockings			58				163				79				52				65
Out-of-service days for cold-stacked status			—				—				—				29				176
Operating Revenues:
Time charter		$	14,930			$	12,280			$	11,883			$	10,446			$	11,437
Other marine services			1,072				(616	)			(416	)			(429	)			(224	)
			16,002				11,664				11,467				10,017				11,213
Direct Costs and Expenses:
Operating:
Personnel		$	3,526			$	3,536			$	3,283			$	3,147			$	4,253
Repairs and maintenance			2,638				1,579				1,846				1,540				2,195
Drydocking			134				1,144				144				337				374
Insurance and loss reserves			329				124				245				323				352
Fuel, lubes and supplies			1,490				1,473				1,019				1,631				887
Other			1,871				1,828				1,740				1,424				2,072
			9,988				9,684				8,277				8,402				10,133
Direct Vessel Profit (1)		$	6,014			$	1,980			$	3,190			$	1,615			$	1,080
Other Costs and Expenses:
Lease expense		$	456			$	402			$	371			$	284			$	270
Depreciation and amortization			3,306				3,258				2,948				3,296				3,305

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

		Three Months Ended
		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Middle East and Asia
Time Charter Statistics:
Average rates per day worked		$	9,673			$	9,882			$	9,612			$	10,374			$	9,292
Fleet utilization			87	%			77	%			81	%			73	%			81	%
Fleet available days			1,651				1,800				1,717				1,780				1,820
Out-of-service days for repairs, maintenance and drydockings			160				153				38				134				105
Out-of-service days for cold-stacked status			—				90				178				214				116
Operating Revenues:
Time charter		$	13,906			$	13,660			$	13,402			$	13,417			$	13,752
Other marine services			460				49				50				85				31
			14,366				13,709				13,452				13,502				13,783
Direct Costs and Expenses:
Operating:
Personnel		$	5,691			$	6,031			$	5,756			$	5,849			$	5,378
Repairs and maintenance			2,545				1,832				1,382				1,610				2,806
Drydocking			2,250				962				232				156				1,185
Insurance and loss reserves			748				507				611				707				461
Fuel, lubes and supplies			1,318				1,010				1,042				777				1,081
Other			1,213				1,627				2,148				2,823				43
			13,765				11,969				11,171				11,922				10,954
Direct Vessel Profit (1)		$	601			$	1,740			$	2,281			$	1,580			$	2,829
Other Costs and Expenses:
Lease expense		$	38			$	31			$	38			$	377			$	35
Depreciation and amortization			4,229				4,345				4,156				4,456				4,663
Latin America
Time Charter Statistics:
Average rates per day worked		$	14,263			$	13,450			$	15,944			$	16,240			$	17,034
Fleet utilization			94	%			85	%			83	%			92	%			86	%
Fleet available days			816				787				889				849				880
Out-of-service days for repairs, maintenance and drydockings			6				59				113				58				117
Operating Revenues:
Time charter		$	10,909			$	8,937			$	11,714			$	12,630			$	12,866
Bareboat charter			48				618				2,484				—				—
Other marine services			534				747				2,055				1,010				357
			11,491				10,302				16,253				13,640				13,223
Direct Costs and Expenses:
Operating:
Personnel		$	3,356			$	3,945			$	4,923			$	3,627			$	3,194
Repairs and maintenance			1,917				2,279				2,469				2,120				1,569
Drydocking			—				—				—				39				456
Insurance and loss reserves			270				326				283				697				925
Fuel, lubes and supplies			748				584				692				1,017				680
Other			685				703				1,388				823				618
			6,976				7,837				9,755				8,323				7,442
Direct Vessel Profit (1)		$	4,515			$	2,465			$	6,498			$	5,317			$	5,781
Other Costs and Expenses:
Lease expense		$	219			$	340			$	1,622			$	(173	)		$	226
'Depreciation and amortization			2,111				2,130				2,769				2,618				2,838

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

		Three Months Ended
		Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021
Anchor handling towing supply
Time Charter Statistics:
Average rates per day worked		$	8,887			$	8,908			$	8,069			$	14,346			$	11,268
Fleet utilization			66	%			66	%			66	%			66	%			59	%
Fleet available days			546				540				552				552				546
Out-of-service days for repairs, maintenance and drydockings			56				2				14				61				105
Out-of-service days for cold-stacked status			131				180				92				92				118
Operating Revenues:
Time charter		$	3,191			$	3,188			$	2,926			$	5,224			$	3,640
Other marine services			(143	)			(160	)			(129	)			(151	)			(157	)
			3,048				3,028				2,797				5,073				3,483
Direct Costs and Expenses:
Operating:
Personnel		$	1,050			$	1,136			$	1,389			$	1,584			$	1,513
Repairs and maintenance			566				293				608				1,044				471
Drydocking			(30	)			(7	)			1				(217	)			1,322
Insurance and loss reserves			146				(137	)			148				193				99
Fuel, lubes and supplies			215				144				321				388				344
Other			435				439				556				408				444
			2,382				1,868				3,023				3,400				4,193
Other Costs and Expenses:
Lease expense		$	450