Seacor Marine Announces Second Quarter 2020 Results

Rhea-AI Summary

SEACOR Marine Holdings (NYSE:SMHI) reported its second quarter results for 2020, revealing a net loss of $6.1 million ($0.24 loss per share) and an operating loss of $16.7 million. The company acquired the remaining 50% stake in SEACOSCO Offshore for $28.2 million, adding eight modern supply vessels to its fleet. Average dayrates increased to $11,018, up from $10,387 in Q2 2019. Despite challenges from COVID-19 and volatile oil prices, SEACOR Marine expects the new vessels to enhance cash flow and anticipates a $31.2 million tax refund from the CARES Act.

Positive

• Acquired remaining 50% of SEACOSCO Offshore, adding eight modern supply vessels.
• Average dayrates improved to $11,018, a year-over-year increase.
• Expects to receive $31.2 million in cash tax refunds under the CARES Act.
• Achieved $7.8 million in projected annual savings, nearing $8 million target.

Negative

• Net loss of $6.1 million compared to $31.4 million the previous year, although an improvement.
• Operating revenues declined to $41.9 million from $52.8 million in Q2 2019.
• Continued impact of COVID-19 and oil price volatility expected on operations.

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.

___________________

(1

)

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

FAQ

What were SEACOR Marine's second quarter results for 2020?

SEACOR Marine reported a net loss of $6.1 million and an operating loss of $16.7 million for Q2 2020.

How did SEACOR Marine's average dayrates change in Q2 2020?

Average dayrates increased to $11,018 in Q2 2020, up from $10,387 in Q2 2019.

What acquisition did SEACOR Marine complete in Q2 2020?

SEACOR Marine acquired the remaining 50% equity interest in SEACOSCO Offshore for $28.2 million.

How much does SEACOR Marine expect to receive from the CARES Act?

SEACOR Marine expects to receive approximately $31.2 million in cash tax refunds under the CARES Act.

What were the total operating revenues for SEACOR Marine in Q2 2020?

Total operating revenues for Q2 2020 were $41.9 million, down from $52.8 million in Q2 2019.