|
Overall operating revenues were $14.0 million lower in the first quarter. Time charter revenues decreased by $11.0 million, primarily due to lower average day rates, a shorter quarter and increased downtime due to vessel drydockings and conversions. Downtime due to vessel drydockings in the first quarter was 371 days compared with 157 days in the preceding quarter. Other operating revenues decreased by $3.0 million primarily due to a reduction in third party brokered vessel activity in the Middle East. As of March 31, 2010, the Company had 14 vessels cold-stacked in the U.S. Gulf of Mexico compared with 19 as of December 31, 2009. During the first quarter, one additional vessel was cold-stacked, and six vessels were returned to active service. As of March 31, 2010, the Company had deferred $15.7 million of vessel charter hire scheduled to be paid through the conveyance of a limited net profit interest in developmental oil and gas producing properties owned by a customer. Of this amount, $4.7 million was deferred in the first quarter. The Company expects to defer an additional $1.7 million of vessel charter hire under this arrangement through May 2010. The customer has provided payout estimates indicating the Company will receive payments of $10.8 million in 2010 and $6.6 million in 2011. Such payments are contingent upon future production. Production from these properties commenced in April 2010. The Company will recognize revenues as cash is received or earlier should future payments become determinable. Operating expenses were $1.6 million higher in the first quarter primarily due to a $4.2 million increase in regulatory drydocking costs and a $3.3 million accrual for the settlement of litigation, which is pending court approval. These increases were partially offset by decreased repair and maintenance costs and reductions in insurance premiums, insurance deductibles and brokered vessel activity. The number of days available for charter in the first quarter decreased by 1,172, or 8.7%. Overall utilization increased from 68.0% to 71.5% and overall average day rates, based on time charter revenues recognized, decreased by 6.2% from $12,093 per day to $11,339 per day. Marine Transportation Services -- Marine Transportation Services reported an operating loss in the first quarter of $2.8 million on operating revenues of $19.5 million compared with operating income of $0.9 million on operating revenues of $20.5 million in the preceding quarter. The decrease in operating income was primarily due to a $3.6 million increase in drydocking expenses. During the first quarter, two of the Company's tankers underwent regulatory drydockings, one of which was completed during the quarter and the other being completed in April. A third tanker had a 5-day handover drydocking in January before commencing a long-term bareboat charter. The remaining drydocking program for 2010 consists of two drydockings in the third quarter; one regulatory and the other a short handover for a tanker prior to commencing a long-term bareboat charter. As of March 31, 2010, three of the Company's eight tankers were operating under long-term bareboat charters, four were operating under time charters and one was operating in the spot market. Inland River Services -- Operating income in the first quarter was $7.8 million on operating revenues of $33.4 million compared with operating income of $15.9 million on operating revenues of $53.6 million in the preceding quarter. First quarter results included $0.9 million in gains on asset dispositions compared with $1.2 million in gains in the preceding quarter. Excluding the impact of gains on asset dispositions, operating income was $7.7 million lower in the first quarter primarily due to softer freight rates in response to continuing weak demand for non-grain shipments, difficult weather-related operating conditions in January and February, and decreased freight loadings as seasonal harvest activity wound down. Aviation Services -- Operating income in the first quarter was $2.5 million on operating revenues of $50.3 million compared with operating income of $8.1 million on operating revenues of $54.3 million in the preceding quarter. Operating revenues were lower primarily due to fewer flight hours in support of offshore oil and gas activities in the U.S. Gulf of Mexico and Alaska, a reduction in patient transports and lower revenues from air medical services, and reduced flight activity at the fixed base operation in Alaska. Revenues from leasing activities improved due to the start up of new contracts in Indonesia and Brazil. Operating expenses were lower in the preceding quarter primarily due to the impact of a $3.0 million receipt of insurance proceeds related to damages sustained in hurricanes Gustav and Ike. Excluding the impact of the hurricane proceeds, operating expenses decreased in the current quarter due to lower fuel expenses in line with the reductions in flight hours and flight activity at the FBO. Environmental Services -- Environmental Services reported an operating loss in the first quarter of $0.2 million on operating revenues of $28.2 million compared with operating income of $3.5 million on operating revenues of $44.5 million in the preceding quarter. A reduction in emergency response activity accounted for $14.4 million of the change in operating revenues and $2.8 million of the change in operating income. Retainer services revenues and operating income were $0.8 million lower than in the preceding quarter. Commodity Trading and Logistics -- Commodity Trading and Logistics reported a segment loss in the first quarter of $4.6 million on operating revenues of $143.0 million compared with a segment loss of $0.4 million on operating revenues of $171.4 million in the preceding quarter. The segment loss in the first quarter included $0.7 million in foreign currency transaction losses, net and a $0.6 million inventory market write-down. In addition, the Company's first quarter losses in its alcohol manufacturing facility joint venture of $1.0 million, net of tax were primarily related to start-up activities. Harbor and Offshore Towing Services -- Operating income in the first quarter was $2.7 million on operating revenues of $17.4 million compared with operating income of $0.1 million on operating revenues of $16.2 million in the preceding quarter. The improvement in operating income was primarily due to an 9.5 percent increase in the number of harbor jobs and lower regulatory docking costs. Interest Expense -- Interest expense in the first quarter was lower primarily due to the redemption and conversion of the Company's 2.875% Convertible Notes in the preceding quarter. Marketable Securities -- Marketable security gains were $2.0 million in the first quarter compared with gains of $9.3 million in the preceding quarter. Foreign Currency Losses, net -- Foreign currency losses, net were $2.7 million in the first quarter primarily due to the weakening of the euro and pound sterling versus the U.S. dollar. Stock Repurchases -- During the first quarter, the Company purchased 249,700 shares of its common stock at an average price of $79.44 per share. At the end of the quarter, 22,552,459 shares of SEACOR's common stock remained outstanding. Stock Repurchase Authority -- During the first quarter, the Company's Board of Directors increased the Company's authority to purchase its common stock up to $250.0 million. At the end of the quarter, $230.2 million of repurchase authority remained. Title XI Debt -- On March 30, 2010, the Company notified the holders of the outstanding bonds on two of the Company's double-hull product tankers of its intention of redeem all of the outstanding bonds, in the principal amount of $61.9 million, as of April 30, 2010. Capital Commitments -- The Company's unfunded capital commitments as of March 31, 2010 consisted primarily of offshore support vessels, helicopters and inland river dry cargo barges and totaled $174.1 million, of which $91.0 million is payable during 2010 and the balance payable through 2013. Of the total unfunded capital commitments, $3.5 million may be terminated without further liability. As of March 31, 2010, the Company held balances of cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and title XI reserve funds totaling $803.9 million. Subsequent to March 31, 2010, the Company committed to purchase additional equipment, primarily helicopters, for $51.7 million. SEACOR is a global provider of equipment and services primarily supporting the offshore oil and gas and marine transportation industries. SEACOR offers customers a diversified suite of services including offshore marine, marine transportation, inland river, aviation, environmental, commodity trading and logistics and offshore and harbor towing. SEACOR is focused on providing highly responsive local service combined with the highest safety standards, innovative technology, modern, efficient equipment and dedicated professional employees. SEACOR Holdings |
SEACOR Holdings Announces First Quarter Results