CKH - SEACOR Holdings Announces Results for the Third Quarter Ended September 30 2019

October, 28 2019 07:18 PM SEACOR Holdings Inc.

FORT LAUDERDALE, Fla., Oct. 28, 2019 (GLOBE NEWSWIRE) -- SEACOR Holdings Inc. (NYSE:CKH) (the “Company”) today announced its results for the quarter ended September 30, 2019:

Net income attributable to stockholders was $6.4 million ($0.32 per diluted share) compared with $17.1 million ($0.88 per diluted share) for the quarter ended September 30, 2018. The prior year quarter included $5.5 million ($0.26 per diluted share) related to the amortization of previously deferred gains and net mark-to-market gains on marketable securities.
“Cash Earnings” were $27.7 million compared with $30.0 million for the same quarter last year. In the current quarter, "cash earnings" included $4.5 million for August and September's results from the acquisition of our partner's 49% ownership in SEA-Vista.
Operating income attributable to stockholders, was $12.9 million compared with $23.2 million for the quarter ended September 30, 2018. The prior year quarter benefited from the amortization of previously deferred gains of $5.3 million.

The Company uses the non-GAAP financial measures "Cash Earnings" and OIBDA in this release; a reconciliation to their closest U.S. GAAP measure is included in "Use of non-GAAP Financial Measures" in this release.

Charles Fabrikant, Executive Chairman, commented on the quarter's results as follows:

"The quarter’s disappointing results were primarily due to the extremely difficult conditions in the inland transportation and logistics services segment and a more typical level of demand for our emergency response services.

The third calendar quarter usually produces improved results in the inland sector compared with the second quarter, but this quarter the inland river system continued to suffer from the carryover effects of extreme flooding earlier in the year. Our inland group experienced curtailed demand for fleeting and terminal services, and the barge pool incurred higher costs. The U.S. trade dispute with China and competition from cheaper grain in South America were additional challenges. These challenges continue today. Corn export demand continues to be dismal with shipments approximately 60% and export sales approximately 45% below last year. Export sales are also lagging. Brazil, whose share of the soybean export market increased after the commencement of the trade dispute, continues to compete aggressively.

Witt-O’Brien’s higher activity level in the third quarter of last year reflected a multitude of early stage response and recovery task orders following the hurricanes of 2017. Witt O’Brien’s continues to support the long-term recovery efforts of public sector clients such as the U.S. Virgin Islands as well as expand into the private sector.

The overall operating results for the ocean sector in the current quarter were positive and in general compare favorably with the prior year, despite incurring a dry-docking this quarter and an accounting benefit in the prior year from the amortization of previously deferred gains. The operating discussion below provides more details."

Fabrikant continued, "The highlight of the quarter was the acquisition of our partner’s interest in Sea-Vista, strengthening our position in the Jones Act market and also adding substantial revenue backlog. As of September 30^th, the contracted backlog in SEA-Vista was $237.7 million through 2026. (The acquisition also should reduce complexity in our financial statements, no doubt an added plus. We encourage you to review the tables provided in the release which include a reconciliation of cash earnings.)"

Operating Discussion

Ocean Transportation & Logistics Services - Operating income and OIBDA attributable to stockholders were $17.4 million and $26.5 million, in the current year quarter compared with $19.5 million and $27.6 million in the prior year quarter, respectively. Operating income and OIBDA attributable to stockholders in the prior year quarter benefited from the amortization of previously deferred gains of $4.5 million.

The operating results from harbor towing activities and SEACOR Island Lines improved meaningfully with a combined incremental contribution of $5.3 million and $5.1 million in operating income and OIBDA, respectively, as a consequence of increases in ship docking requirements in various ports and increased unit freight activity into the Bahamas. These increases were partially offset by lost revenue associated with 42 days of planned out-of-service time required for dry-docking one SEA-Vista vessel and the corresponding dry-docking expense. This quarter's results also reflected a reduction in the time charter rate for another SEA-Vista vessel in exchange for a multiyear extension of its charter. Operating results for the Company's military and commercial cargo activities, marketed under the Waterman brand, were also modestly lower in the current quarter.

Inland Transportation & Logistics Services - Operating income and OIBDA were $0.6 million and $6.2 million in the current year quarter compared with $4.3 million and $10.5 million in the prior year quarter, respectively. As previously detailed, the flooding throughout the inland waterways system and weak demand negatively impacted this year’s Inland’s results. Margins on freight operations suffered as weak freight rates were exacerbated by usually extended cycle times for trips and higher towing costs.

Witt O’Brien’s - Operating income and OIBDA were $2.1 million and $2.3 million in the current year quarter compared with $6.1 million and $6.6 million in the prior year quarter, respectively. As previously noted, the prior year had benefited from the initial activity surge that followed the late season hurricanes in 2017.

Capital Commitments - The Company’s capital commitments as of September 30, 2019 were $21.3 million and included the Company's interest in two foreign-flag rail ferries, two inland river towboats, other equipment and vessel and terminal improvements. Subsequent to September 30, 2019, the Company committed to purchase additional equipment for $0.3 million.

Liquidity and Debt - During the current year quarter, the Company repurchased $18.2 million in principal amount of its 3.0% Convertible Senior Notes for $18.1 million resulting in debt extinguishment losses of $0.8 million.

As of September 30, 2019, the Company’s balances of cash, cash equivalents, restricted cash, restricted cash equivalents, marketable securities and construction reserve funds totaled $88.0 million. As of September 30, 2019, the Company had exited its position in Dorian LPG Ltd. Total outstanding debt was $317.8 million, including $25.0 million of outstanding borrowings under the Company's revolving credit facilities, which has subsequently been repaid. As of September 30, 2019, the Company had $200.0 million of borrowing capacity under its credit facilities.

Equity - For the quarter ended September 30, 2019, basic and diluted weighted average shares outstanding were 19,322,423 and 20,738,919, respectively. As of September 30, 2019, the total shares outstanding were 20,179,218.

SEACOR Holdings Inc. (“SEACOR”) is a diversified holding company with interests in domestic and international transportation and logistics and risk management consultancy. SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, including risks relating to weakening demand for the Company’s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels, increased government legislation and regulation of the Company’s businesses that could increase the cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, decreased demand for the Company’s services as a result of declines in the global economy, 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, activity in foreign countries and changes in foreign political, military and economic conditions, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Ocean Transportation & Logistics Services, decreased demand for Ocean Transportation & Logistics Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services on several key customers, consolidation of the Company’s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company’s Common Stock, operational risks of Ocean Transportation & Logistics Services and Inland Transportation & Logistics Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland Transportation & Logistics Services’ operations, the ability to realize anticipated benefits from acquisitions and other strategic transactions, adequacy of insurance coverage, the attraction and retention of qualified personnel by the Company, changes in U.S. and international trade policies and various other matters and factors, many of which are beyond the Company’s control as well as those discussed in Item 1A. (Risk Factors) of the Company’s Annual report on Form 10-K and other reports filed by the Company with the Securities and Exchange Commission (“SEC”). It should be understood that it is not possible to predict or identify all such factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties. Given these factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

For additional information, contact Investor Relations at (954) 627-5278 or visit SEACOR’s website at www.seacorholdings.com.

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


Three Months Ended

Nine Months Ended

September 30,

September 30,

2019


2018


2019


2018

Operating Revenues
$
200,658


$
220,257


$
607,205


$
621,912

Costs and Expenses:







Operating
147,386


147,529


437,368


441,474

Administrative and general
24,923


26,083


78,383


76,189

Depreciation and amortization
16,975


18,616


51,120


57,069


189,284


192,228


566,871


574,732

Gains on Asset Dispositions, Net
1,145


6,018


2,259


13,569

Operating Income
12,519


34,047


42,593


60,749

Other Income (Expense):







Interest income
2,198


2,450


5,983


6,485

Interest expense
(4,816
)

(8,335
)

(14,832
)

(25,502
)
Debt extinguishment losses, net
(777
)

(160
)

(2,073
)

(5,609
)
Marketable security gains (losses), net
144


1,713


16,496


(1,303
)
Foreign currency gains (losses), net
(1,877
)

(328
)

(1,663
)

16

Other, net
505


357


(114
)

54,951


(4,623
)

(4,303
)

3,797


29,038

Income Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies
7,896


29,744


46,390


89,787

Income Tax Expense
1,417


3,362


7,012


12,934

Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies
6,479


26,382


39,378


76,853

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
(618
)

821


(3,448
)

1,915

Net Income
5,861


27,203


35,930


78,768

Net Income (Loss) Attributable to Noncontrolling Interests in Subsidiaries
(544
)

10,136


7,239


15,934

Net Income Attributable to SEACOR Holdings Inc.
$
6,405


$
17,067


$
28,691


$
62,834








Basic Earnings Per Common Share of SEACOR Holdings Inc.
$
0.33


$
0.94


$
1.54


$
3.48








Diluted Earnings Per Common Share of SEACOR Holdings Inc.
$
0.32


$
0.88


$
1.48


$
3.21









Weighted Average Common Shares Outstanding:







Basic
19,322,423


18,108,388


18,618,613


18,052,274

Diluted
20,738,919


21,192,554


19,984,302


22,508,622









OIBDA⁽¹⁾
$
29,494


$
52,663


$
93,713


$
117,818

OIBDA Attributable to SEACOR Holdings Inc.⁽¹⁾
$
28,813


$
38,630


$
77,714


$
96,120

______________________
1. Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.

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


Three Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018
Operating Revenues
$
200,658


$
197,023


$
209,524


$
213,838


$
220,257

Costs and Expenses:









Operating
147,386


142,871


147,111


150,374


147,529

Administrative and general
24,923


26,714


26,746


26,718


26,083

Depreciation and amortization
16,975


17,009


17,136


17,510


18,616


189,284


186,594


190,993


194,602


192,228

Gains on Asset Dispositions, Net
1,145


677


437


6,014


6,018

Operating Income
12,519


11,106


18,968


25,250


34,047

Other Income (Expense):









Interest income
2,198


1,885


1,900


2,245


2,450

Interest expense
(4,816
)

(4,903
)

(5,113
)

(6,181
)

(8,335
)
Debt extinguishment losses, net
(777
)

(503
)

(793
)

(6,017
)

(160
)
Marketable security gains (losses), net
144


13,284


3,068


(11,128
)

1,713

Foreign currency gains (losses), net
(1,877
)

(191
)

405


(2,280
)

(328
)
Other, net
505


25


(644
)

13


357


(4,623
)

9,597


(1,177
)

(23,348
)

(4,303
)
Income Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies
7,896


20,703


17,791


1,902


29,744

Income Tax Expense (Benefit)
1,417


3,390


2,205


(4,519
)

3,362

Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies
6,479


17,313


15,586


6,421


26,382

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
(618
)

(312
)

(2,518
)

(1,987
)

821

Net Income
5,861


17,001


13,068


4,434


27,203

Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries
(544
)

2,448


5,335


9,120


10,136

Net Income (Loss) attributable to SEACOR Holdings Inc.
$
6,405


$
14,553


$
7,733


$
(4,686
)

$
17,067











Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.
$
0.33


$
0.80


$
0.42


$
(0.26
)

$
0.94











Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.
$
0.32


$
0.76


$
0.41


$
(0.26
)

$
0.88











Weighted Average Common Shares Outstanding:









Basic
19,322


18,289


18,233


18,165


18,108

Diluted
20,739


19,634


19,571


18,165


21,193

Common Shares Outstanding at Period End
20,179


18,550


18,528


18,330


18,243











OIBDA⁽¹⁾
$
29,494


$
28,115


$
36,104


$
42,760


$
52,663

OIBDA attributable to SEACOR Holdings Inc.⁽¹⁾
$
28,813


$
21,905


$
26,996


$
29,822


$
38,630

______________________
1. Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.

SEACOR HOLDINGS INC.
SEGMENT INFORMATION
(in thousands, unaudited)


Three Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018
Ocean Transportation & Logistics Services









Operating Revenues
$
102,661


$
109,681


$
109,272


$
97,366


$
109,939

Costs and Expenses:









Operating
66,888


71,230


69,932


64,234


64,683

Administrative and general
9,404


9,423


10,198


10,132


9,170

Depreciation and amortization
10,191


10,230


10,337


10,707


11,298


86,483


90,883


90,467


85,073


85,151

Gains on Asset Dispositions, Net
804


349


17


5,496


5,505

Operating Income
16,982


19,147


18,822


17,789


30,293

Other Income (Expense):









Foreign currency gains (losses), net
(104
)

1


(47
)

(17
)

(24
)
Other, net
505


28


(651
)

(15
)

(96
)
Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
(242
)

700


111


(23
)

2,073

Segment Profit⁽¹⁾
$
17,141


$
19,876


$
18,235


$
17,734


$
32,246











OIBDA⁽²⁾
$
27,173


$
29,377


$
29,159


$
28,496


$
41,591

OIBDA⁽²⁾ attributable to stockholders
$
26,492


$
23,167


$
20,051


$
15,558


$
27,558

Dry-docking expenditures for U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s (included in operating costs and expenses)
$
4,310


$
1,925


$
1,581


$
6,430


$
399

Out-of-service days for dry-dockings of U.S.-flag petroleum and chemical carriers, dry bulk carriers and PCTC’s
42


30


15


147


—

Dry-docking expenditures for all other vessels
$
1,783


$
1,447


$
1,250


$
269


$
1,489











Inland Transportation & Logistics Services









Operating Revenues
$
72,020


$
61,455


$
65,602


$
77,513


$
78,845

Costs and Expenses:









Operating
62,775


54,486


54,245


60,801


65,667

Administrative and general
3,327


3,133


3,356


3,381


3,230

Depreciation and amortization
5,694


5,699


5,725


5,490


6,197


71,796


63,318


63,326


69,672


75,094

Gains on Asset Dispositions
330


330


420


481


513

Operating Income (Loss)
554


(1,533
)

2,696


8,322


4,264

Other Income (Expense):









Foreign currency gains (losses), net
(1,729
)

(191
)

459


(2,240
)

(282
)
Other, net
—


—


—


37


—

Equity in Losses of 50% or Less Owned Companies, Net of Tax
(1,084
)

(618
)

(2,472
)

(2,571
)

(1,245
)
Segment Profit (Loss)⁽¹⁾
$
(2,259
)

$
(2,342
)

$
683


$
3,548


$
2,737











OIBDA⁽²⁾
$
6,248


$
4,166


$
8,421


$
13,812


$
10,461

SEACOR HOLDINGS INC.
SEGMENT INFORMATION (continued)
(in thousands, unaudited)


Three Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018
Witt O’Brien’s









Operating Revenues
$
24,345


$
23,753


$
32,943


$
37,702


$
30,267

Costs and Expenses:









Operating
16,323


15,691


21,772


24,258


16,240

Administrative and general
5,718


6,831


6,402


6,876


7,389

Depreciation and amortization
210


209


206


660


492


22,251


22,731


28,380


31,794


24,121

Gains on Asset Dispositions and Impairments
10


—


—


—


—

Operating Income
2,104


1,022


4,563


5,908


6,146

Other Income (Expense):









Foreign currency losses, net
—


—


—


(1
)

(12
)
Other, net
(1
)

(2
)

(3
)

—


—

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
764


(128
)

(67
)

113


(13
)
Segment Profit
$
2,867


$
892


$
4,493


$
6,020


$
6,121











OIBDA⁽²⁾
$
2,314


$
1,231


$
4,769


$
6,568


$
6,638











Other









Operating Revenues
$
1,635


$
2,142


$
1,805


$
1,290


$
1,214

Costs and Expenses:









Operating
1,404


1,472


1,253


1,106


957

Administrative and general
846


837


839


551


606

Depreciation and amortization
501


493


489


237


202


2,751


2,802


2,581


1,894


1765

Gains (Losses) on Asset Dispositions
34


(2
)

—


37


—

Operating Loss
(1,082
)

(662
)

(776
)

(567
)

(551
)
Other Income (Expense):









Foreign currency losses, net
—


—


—


(4
)

—

Other, net
—


—


—


(105
)

452

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
(56
)

(266
)

(90
)

494


6

Segment Loss⁽¹⁾
$
(1,138
)

$
(928
)

$
(866
)

$
(182
)

$
(93
)










Corporate and Eliminations









Operating Revenues
$
(3
)

$
(8
)

$
(98
)

$
(33
)

$
(8
)
Costs and Expenses:









Operating
(4
)

(8
)

(91
)

(25
)

(18
)
Administrative and general
5,628


6,490


5,951


5,778


5,688

Depreciation and amortization
379


378


379


416


427


6,003


6,860


6,239


6,169


6,097

Losses on Asset Dispositions
(33
)

—


—


—


—

Operating Loss
$
(6,039
)

$
(6,868
)

$
(6,337
)

$
(6,202
)

$
(6,105
)
Other Income (Expense):









Foreign currency losses, net
$
(44
)

$
(1
)

$
(7
)

$
(18
)

$
(10
)
Other, net
1


(1
)

10


96


1

______________________

Includes amounts attributable to both SEACOR and noncontrolling interests.
Non-GAAP Financial Measure. See explanation of use of non-GAAP financial measures included elsewhere in this release.

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)


Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018
ASSETS









Current Assets:









Cash and cash equivalents
$
76,815


$
138,757


$
141,152


$
144,221


$
324,564

Restricted cash and restricted cash equivalents
1,221


1,221


2,992


2,991


2,990

Marketable securities
6,038


39,368


33,384


30,316


41,445

Receivables:









Trade, net of allowance for doubtful accounts
199,013


164,964


174,278


171,828


151,217

Other
43,449


38,297


32,635


38,881


45,197

Inventories
5,224


5,293


4,914


4,530


5,139

Prepaid expenses and other
6,130


5,640


5,809


5,382


6,087

Total current assets
337,890


393,540


395,164


398,149


576,639

Property and Equipment:









Historical cost
1,424,907


1,416,084


1,413,488


1,407,329


1,403,886

Accumulated depreciation
(607,727
)

(593,168
)

(577,136
)

(560,819
)

(545,179
)
Net property and equipment
817,180


822,916


836,352


846,510


858,707

Operating Lease Right-of-Use Assets
153,464


161,518


167,325


—


—

Investments, at Equity, and Advances to 50% or Less Owned Companies
154,968


155,645


155,290


156,886


149,184

Construction Reserve Funds
3,908


3,908


3,908


3,908


5,908

Goodwill
32,668


32,714


32,720


32,708


32,767

Intangible Assets, Net
21,884


22,773


23,662


24,551


25,724

Other Assets
8,284


10,376


7,385


8,312


8,938


$
1,530,246


$
1,603,390


$
1,621,806


$
1,471,024


$
1,657,867











LIABILITIES AND EQUITY









Current Liabilities:









Current portion of long-term debt
$
76,426


$
78,301


$
8,308


$
8,497


$
155,737

Current portion of long-term operating lease liabilities
36,422


36,171


35,540


—


—

Accounts payable and accrued expenses
54,921


35,132


50,097


59,607


56,533

Other current liabilities
67,603


64,796


67,456


55,659


66,179

Total current liabilities
235,372


214,400


161,401


123,763


278,449

Long-Term Debt
241,408


234,445


315,303


346,128


372,657

Long-Term Operating Lease Liabilities
116,866


125,182


131,862


—


—

Deferred Income Taxes
103,489


99,938


97,758


94,420


99,565

Deferred Gains and Other Liabilities
20,463


20,768


20,688


52,871


60,502

Total liabilities
717,598


694,733


727,012


617,182


811,173

Equity:









SEACOR Holdings Inc. stockholders’ equity:









Preferred stock
—


—


—


—


—

Common stock
408


392


392


390


389

Additional paid-in capital
1,659,428


1,600,838


1,598,804


1,596,642


1,593,430

Retained earnings
519,023


512,618


498,065


474,809


479,495

Shares held in treasury, at cost
(1,365,594
)

(1,366,432
)

(1,366,267
)

(1,366,773
)

(1,366,773
)
Accumulated other comprehensive loss, net of tax
(1400
)

(995
)

(903
)

(914
)

(444
)

811,865


746,421


730,091


704,154


706,097

Noncontrolling interests in subsidiaries
783


162,236


164,703


149,688


140,597

Total equity
812,648


908,657


894,794


853,842


846,694


$
1,530,246


$
1,603,390


$
1,621,806


$
1,471,024


$
1,657,867

Use of non-GAAP Financial Measures

The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with U.S. GAAP, including OIBDA and Cash Earnings.

The Company defines OIBDA as operating income (loss) plus depreciation and amortization. The Company includes maintenance and repair costs, including major overhauls and regulatory dry-dockings, and gains or losses (or impairments) on asset dispositions in OIBDA. The Company defines Cash Earnings as OIBDA further adjusted to exclude the amortization of non-cash deferred gains and amounts attributable to its minority partner in SEA-Vista as well as the gain or loss associated with marking-to-market securities held for investment, accrued net cash expense associated with interest on debt obligations, and the Company’s estimate of cash taxes. Other companies may calculate OIBDA and Cash Earnings differently than the Company, which may limit their usefulness as comparative measures. In addition, each of these measures does not necessarily represent funds available for discretionary use and are not measures of the Company’s ability to fund its cash needs. OIBDA and Cash Earnings are each financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) as a criteria for annual incentive bonuses paid to Company officers and other shore-based employees; and (iii) to compare to the OIBDA and Cash Earnings of other companies when evaluating potential acquisitions. In addition, the Company believes Cash Earnings is meaningful to investors because it assists in evaluating the Company’s results of operations and net cash generated by business activities across previous and subsequent accounting periods and to better understand the long-term performance of the Company. The Company views OIBDA and Cash Earnings as measures of operating performance not liquidity.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The following tables reconcile these non-GAAP measures to their most closely comparable U.S. GAAP measures (amounts in thousands, except per share data).


Three Months Ended September 30,

Nine Months Ended September 30,

2019


2018


2019


2018

U.S. GAAP Measures







Net Income Attributable to Stockholders
$
6,405


$
17,067


$
28,691


$
62,834

Diluted Earnings Per Common Share⁽¹⁾
$
0.32


$
0.88


$
1.48


$
3.21









Reconciliation of non-GAAP Financial Measures







Operating Income (U.S. GAAP)
$
12,519


$
34,047


$
42,593


$
60,749

(+) Depreciation and amortization
16,975


18,616


51,120


57,069

OIBDA⁽²⁾
29,494


52,663


93,713


117,818

(–) Amortization of deferred gains⁽³⁾
(330
)

(11,293
)

(991
)

(19,031
)
(–) OIBDA less amortization of deferred gains attributable to noncontrolling interests
(681
)

(9,687
)

(15,999
)

(21,698
)
(–) Cash interest expense, net⁽⁴⁾
(900
)

(3,301
)

(2,675
)

(11,029
)
(–) Income tax obligation
(6
)

(52
)

(19
)

(17,847
)
(+/–) Marketable security gains (losses), net
144


1,713


16,496


(1,303
)
Cash Earnings
$
27,721


$
30,043


$
90,525


$
46,910

______________________

Includes diluted earnings per common share of $0.01 and $0.06 for the quarter ended September 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio. Includes diluted earnings per common share of $0.65 and diluted loss per common share of $0.05 for the six months ended September 30, 2019 and 2018, respectively, related to marking-to-market the Company’s marketable security portfolio.
All references to OIBDA in this release are calculated in the same manner.
For the three and nine months ended September 30, 2019, amortization of deferred gains is included in gains on asset dispositions. For the three and nine months ended September 30, 2018, amortization of deferred gains may be included in operating expenses as a reduction to rental expense and/or included in gains on asset dispositions.
Amount is net of interest income, excludes capitalized interest, and is net of our partner’s portion of SEA-Vista interest expense of $0.2 million and $0.7 million for the three months ended September 30, 2019 and 2018, respectively, and $1.2 million and $2.1 million for the nine months ended September 30, 2019 and 2018, respectively.

SEACOR HOLDINGS INC.
FLEET COUNTS
(unaudited)


Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018
Ocean Transportation & Logistics Services









Bulk Transportation Services:









Petroleum and chemical carriers - U.S.-flag
9

9

9

10

10
Bulk carriers - U.S.-flag
2

2

2

2

2
Port & Infrastructure Services:









Harbor tugs - U.S.-flag
24

24

24

24

24
Harbor tugs - Foreign-flag
8

8

8

8

8
Offshore tug - U.S.-flag
1

1

1

1

1
Ocean liquid tank barges - U.S.-flag
5

5

5

5

5
Ocean liquid tank barges - Foreign-flag
1

1

1

1

1
Specialty vessel - Foreign-flag⁽¹⁾
2

2

1

—

—
Logistics Services:









PCTC⁽²⁾ - U.S.-flag
4

4

4

4

4
Short-sea container/RORO⁽³⁾ vessels - Foreign-flag
8

9

9

9

9
RORO⁽³⁾ & deck barges - U.S.-flag
7

7

7

7

7
Rail ferries - Foreign-flag
2

2

2

2

2

73

74

73

73

73










Inland Transportation & Logistics Services









Bulk Transportation Services:









Dry-cargo barges
1,374

1,374

1,374

1,372

1,372
Liquid tank barges
20

20

20

20

20
Specialty barges⁽⁴⁾
5

5

5

5

5
Towboats:









4,000 hp - 6,600 hp
18

18

18

18

18
3,300 hp - 3,900 hp
3

3

3

3

3
Less than 3,200 hp
2

2

2

2

2
Port & Infrastructure Services:









Harbor boats:









1,100 hp - 2,000 hp
18

18

18

18

18
Less than 1,100 hp
6

6

6

6

6
Logistics Services:









Dry-cargo barges
33

33

33

35

35

1,479

1,479

1,479

1,479

1,479

______________________

Line handling vessel.
Pure Car/Truck Carrier.
Roll On/Roll Off.
Includes non-certificated 10,000 and 30,000 barrel inland river liquid tank barges.

Company Name:	SEACOR Holdings Inc.
Stock Symbol:	CKH
Market:	NYSE
Website:	seacorholdings.com

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