SEACOR Marine Announces Third Quarter 2020 Results

Rhea-AI Summary

SEACOR Marine Holdings Inc. (NYSE:SMHI) reported a net loss of $18.1 million for Q3 2020, reflecting challenges from COVID-19 and hurricanes. Average dayrates rose to $11,323, driven by improved fleet mix and acquisition of SEACOSCO, adding eight vessels. However, operating revenues decreased to $45.7 million from $54.7 million year-over-year, with an operating loss of $11.4 million. The company successfully completed its Transformation Plan, achieving $8 million in annual savings. Caution remains due to ongoing volatility in oil prices and demand fluctuations.

Positive

• Average dayrates increased to $11,323 from $10,946 year-over-year.
• Acquisition of SEACOSCO added eight modern platform supply vessels, enhancing fleet capabilities.
• Transformation Plan achieved $8 million in annual savings.

Negative

• Net loss of $18.1 million compared to $10.3 million in Q3 2019.
• Operating revenue decreased to $45.7 million from $54.7 million year-over-year.
• Operating loss widened to $11.4 million from $3.4 million in Q3 2019.
• Lowest utilization levels on record in U.S. operations due to hurricanes.

HOUSTON, Nov. 05, 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 third quarter ended September 30, 2020.

Notable third quarter items include:

• Average dayrates, excluding those for the wind crew transfer vessel fleet, were $11,323 in the third quarter of 2020 compared to $10,946 in the third quarter of 2019. The year-over-year improvement in average dayrates reflect an improved fleet mix and the full quarter contribution from the acquisition of the remaining 50% of the equity interests in SEACOSCO Offshore LLC (“SEACOSCO”). This acquisition added 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.
  
  
• Multiple hurricanes in the U.S. Gulf of Mexico, the COVID-19 pandemic and volatility in oil prices impacted revenues for the third quarter of 2020. SEACOR Marine expects this volatility to continue for at least the remainder of this year. SEACOR Marine 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 third quarter were $10.2 million, including a one-time restructuring charge of $0.25 million as a result of SEACOR Marine’s cost reduction initiative. During the third quarter of 2020, SEACOR Marine completed its Transformation Plan which resulted in the achievement of the previously announced target of $8.0 million in annual savings. SEACOR Marine continues to evaluate additional opportunities for further cost reductions to continue adapting to changing conditions.
  

SEACOR Marine’s consolidated operating revenues for the third quarter of 2020 were $45.7 million, operating loss was $11.4 million, and direct vessel profit (“DVP”)⁽¹⁾ was $16.6 million. This compares to consolidated operating revenues of $54.7 million, operating loss of $3.4 million, and DVP of $27.5 million in the third quarter of 2019. The reduction in DVP in the third quarter of 2020 was primarily driven by lower revenues in the United States.

Chief Executive Officer John Gellert commented on SEACOR Marine's third quarter results:

“SEACOR Marine continued to execute its strategy of prudent cost control and improving its fleet and geographic mix during a quarter marked by the ongoing challenges of COVID-19 and a very active hurricane season in the U.S. Gulf of Mexico. Our U.S. operations experienced their lowest utilization levels on record, mainly driven by the effects of the most active hurricane season since 2005, with five storms having disrupted operations in the region so far this year. Internationally, our West Africa and Middle East operations experienced weakened demand driven by the effects of low commodity prices and disruptions from the COVID-19 pandemic, as well as higher drydocking and repair time. However, we are encouraged that our operations in Latin America reflect the positive contribution of several vessels recently acquired as part of our SEACOSCO transaction, and that our offshore wind operations in Europe continued to meet our expectations, even in a difficult COVID-19 environment.

“I want to emphasize the importance of the two transactions that we executed at the end of last quarter, which will enhance our results and strengthen our liquidity. The acquisition of our partner’s interest in SEACOSCO is already accretive to our results this quarter, and the ability to carry back net operating losses pursuant to the CARES Act will add over $30 million of liquidity once received. We are well positioned to navigate this very challenging environment and create value for our stakeholders over the long term.

“COVID-19 continues to create significant challenges to our logistics, especially our crew rotations. SEACOR Marine is devoting significant resources to ensure the safety of our crews and the service of our fleet. Although the situation is greatly improved from the first half of the year, much progress needs to be made before we can return to the pre-COVID environment. We need a consistent approach across the offshore industry and better coordination with government authorities in order to facilitate the safe transit of our employees. I again want to thank our crews and shore-based employees for their continued dedication to maintaining safe and reliable operations in a difficult environment.”

For the third quarter of 2020, net loss attributable to SEACOR Marine was $18.1 million ($0.72 loss per basic and diluted share) and operating loss was $11.4 million. Net loss attributable to SEACOR Marine’s continuing operations for the third quarter of 2019 was $10.3 million ($0.34 loss per basic and diluted share) and operating loss was $3.4 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 September 30,								Nine months ended September 30,
	2020				2019				2020				2019
Operating Revenues	$	45,697			$	54,700			$	129,318			$	152,422
Costs and Expenses:
Operating		29,128				27,211				77,661				97,747
Administrative and general		10,155				11,462				35,480				32,798
Lease expense		1,390				4,153				6,152				12,589
Depreciation and amortization		16,613				16,091				46,927				48,600
		57,286				58,917				166,220				191,734
(Loss) Gain on Asset Dispositions and Impairments, Net		233				861				(15,792	)			(2,719	)
Operating Loss		(11,356	)			(3,356	)			(52,694	)			(42,031	)
Other Income (Expense):
Interest income		50				317				1,255				886
Interest expense		(8,598	)			(7,362	)			(23,231	)			(22,659	)
SEACOR Holdings guarantee fees		(11	)			(26	)			(36	)			(87	)
Derivative gains (losses), net		5				3,057				5,204				734
Foreign currency gains, net		(853	)			(370	)			(959	)			(624	)
		(9,407	)			(4,384	)			(17,767	)			(21,750	)
Loss from Continuing Operations Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies		(20,763	)			(7,740	)			(70,461	)			(63,781	)
Income Tax Benefit		(3,119	)			1,277				(24,868	)			(5,606	)
Loss from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies		(17,644	)			(9,017	)			(45,593	)			(58,175	)
Equity in Losses of 50% or Less Owned Companies		(433	)			(1,325	)			1,458				(11,879	)
Loss from Continuing Operations		(18,077	)			(10,342	)			(44,135	)			(70,054	)
(Loss) Income on Discontinued Operations, Net of Tax		—				(7,899	)			—				(6,724	)
Net Loss		(18,077	)			(18,241	)			(44,135	)			(76,778	)
Net Loss attributable to Noncontrolling Interests in Subsidiaries		4				204				(4,036	)			(4,395	)
Net Loss attributable to SEACOR Marine Holdings Inc.	$	(18,081	)		$	(18,445	)		$	(40,099	)		$	(72,383	)
Basic and Diluted Loss Per Common Share and Warrants of SEACOR Marine Holdings Inc.
Continuing operations	$	(0.72	)		$	(0.34	)		$	(1.63	)		$	(2.80	)
Discontinued operations		—				(0.44	)			—			$	(0.29	)
	$	(0.72	)		$	(0.78	)		$	(1.63	)		$	(3.09	)
Weighted Average Common Shares and Warrants Outstanding:
Basic and diluted shares		24,989,977				23,740,718				24,611,666				23,406,759

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

	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Time Charter Statistics:
Average Rates Per Day Worked (excluding crew transfer)	$	11,323			$	11,018			$	11,157			$	11,071			$	10,946
Average Rates Per Day	$	6,656			$	6,648			$	7,163			$	7,260			$	6,981
Fleet Utilization (excluding crew transfer)		54	%			57	%			57	%			62	%			64	%
Fleet Utilization		70	%			69	%			63	%			68	%			74	%
Fleet Available Days (excluding crew transfer)		5,715				5,167				5,210				5,542				6,048
Fleet Available Days		9,379				8,688				8,668				9,007				9,578
Operating Revenues:
Time charter	$	43,586			$	39,807			$	39,290			$	44,465			$	49,747
Bareboat charter		676				723				724				834				1,765
Other marine services		1,435				1,348				1,729				3,771				3,188
		45,697				41,878				41,743				49,070				54,700
Costs and Expenses:
Operating:
Personnel		16,513				13,378				13,706				15,096				15,879
Repairs and maintenance		4,639				4,311				4,804				3,983				5,495
Drydocking		585				566				1,365				766				515
Insurance and loss reserves		1,873				1,589				939				1,663				1,198
Fuel, lubes and supplies		2,388				2,295				2,067				2,409				2,910
Other		3,130				1,774				1,739				2,061				1,214
		29,128				23,913				24,620				25,978				27,211
Direct Vessel Profit (1)		16,569				17,965				17,123				23,092				27,489
Other Costs and Expenses:
Lease expense		1,390				1,355				3,407				3,570				4,153
Administrative and general		10,155				14,560				10,765				11,928				11,462
Depreciation and amortization		16,613				15,313				15,001				15,412				16,091
		28,158				31,228				29,173				30,910				31,706
(Losses) Gains on Asset Dispositions and Impairments, Net		233				(3,453	)			(12,572	)			(2,679	)			862
Operating Loss		(11,356	)			(16,716	)			(24,622	)			(10,497	)			(3,355	)
Other Income (Expense):
Interest income		50				529				676				559				317
Interest expense		(8,598	)			(6,995	)			(7,638	)			(7,397	)			(7,362	)
SEACOR Holdings guarantee fees		(11	)			(9	)			(16	)			(21	)			(26	)
Derivative losses (gains), net		5				85				5,114				(663	)			3,057
Foreign currency gains, net		(853	)			(171	)			65				(1,037	)			(370	)
Other, net		—				—				—				(1	)			—
		(9,407	)			(6,561	)			(1,799	)			(8,560	)			(4,384	)
Loss Before from Continuing Operations Before Income Tax Benefit and Equity in Earnings of 50% or Less Owned Companies		(20,763	)			(23,277	)			(26,421	)			(19,057	)			(7,739	)
Income Tax (Benefit) Expense		(3,119	)			(15,081	)			(6,668	)			(2,306	)			1,277
Loss from Continuing Operations Before Equity in Earnings of 50% or Less Owned Companies		(17,644	)			(8,196	)			(19,753	)			(16,751	)			(9,016	)
Equity in Losses of 50% or Less Owned Companies		(433	)			2,130				(239	)			(2,425	)			(1,325	)
Loss from Continuing Operations		(18,077	)			(6,066	)			(19,992	)			(19,176	)			(10,341	)
(Loss) Income from Discontinued Operations, Net of Tax		—				—				—				(2,742	)			(7,899	)
Net Loss		(18,077	)			(6,066	)			(19,992	)			(21,918	)			(18,240	)
Net (Loss) Income attributable to Noncontrolling Interests in Subsidiaries		4				7				(4,047	)			(1,463	)			204
Net Loss attributable to SEACOR Marine Holdings Inc.	$	(18,081	)		$	(6,073	)		$	(15,945	)		$	(20,455	)		$	(18,444	)
Basic and Diluted Income (Loss) Per Common Share and Warrants of SEACOR Marine Holdings Inc.
Continuing operations	$	(0.72	)		$	(0.24	)		$	(0.66	)		$	(0.74	)		$	(0.49	)
Discontinued operations		—				—				—				(0.12	)			(0.29	)
	$	(0.72	)		$	(0.24	)		$	(0.66	)		$	(0.86	)		$	(0.78	)
Weighted Average Common Shares and Warrants Outstanding:
Basic and Diluted		24,989				24,851				23,989				23,832				23,741
Common Shares and Warrants Outstanding at Period End		24,996				24,899				24,854				23,708				23,653

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked	$	19,397			$	15,574			$	20,988			$	19,285			$	17,851
Fleet utilization		5	%			5	%			11	%			20	%			26	%
Fleet available days		1,871				1,842				1,864				1,956				2,340
Out-of-service days for repairs, maintenance and drydockings	37				32				116				6				159
Out-of-service days for cold-stacked status		1,576				1,465				1,301				1,301				1,131
Operating Revenues:
Time charter	$	1,668			$	1,478			$	4,375			$	7,408			$	10,914
Bareboat charter		731				723				724				732				597
Other marine services		473				513				642				516				838
		2,872				2,714				5,741				8,656				12,349
Direct Costs and Expenses:
Operating:
Personnel		2,481				2,284				2,928				3,432				4,353
Repairs and maintenance		338				314				617				782				1,508
Drydocking		-				110				1,057				252				547
Insurance and loss reserves		778				354				135				566				371
Fuel, lubes and supplies		251				189				524				407				739
Other		85				93				79				102				88
		3,933				3,344				5,340				5,541				7,606
Direct Vessel Profit (Loss) (1)	$	(1,061	)		$	(630	)		$	401			$	3,115			$	4,743
Other Costs and Expenses:
Lease expense	$	716			$	741			$	2,138			$	2,283			$	2,758
Depreciation and amortization		4,961				5,254				5,358				5,474				5,634
Africa, primarily West Africa
Time Charter Statistics:
Average rates per day worked	$	8,364			$	9,001			$	9,249			$	9,435			$	9,316
Fleet utilization		71	%			85	%			89	%			88	%			91	%
Fleet available days		1,288				1,304				1,346				1,349				1,380
Out-of-service days for repairs, maintenance and drydockings		45				90				56				68				—
Out-of-service days for cold-stacked status		124				—				—				—				—
Operating Revenues:
Time charter	$	7,641			$	9,944			$	11,095			$	11,249			$	11,738
Other marine services		(385	)			(480	)			167				1,216				129
		7,256				9,464				11,262				12,465				11,867
Direct Costs and Expenses:
Operating:
Personnel		2,597				2,546				2,695				3,230				3,308
Repairs and maintenance		1,066				1,379				1,435				1,242				1,323
Drydocking		481				256				8				253				(53	)
Insurance and loss reserves		267				188				193				369				230
Fuel, lubes and supplies		994				727				472				817				961
Other		686				565				571				976				499
		6,091				5,661				5,374				6,887				6,268
Direct Vessel Profit (1)	$	1,165			$	3,803			$	5,888			$	5,578			$	5,599
Other Costs and Expenses:
Lease expense	$	430			$	417			$	1,126			$	757			$	761
Depreciation and amortization		2,667				2,889				2,604				2,608				2,681

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Middle East and Asia
Time Charter Statistics:
Average rates per day worked	$	9,670			$	10,245			$	9,634			$	8,843			$	8,795
Fleet utilization		78	%			82	%			73	%			82	%			83	%
Fleet available days		1,809				1,613				1,671				1,901				2,020
Out-of-service days for repairs, maintenance and drydockings	89				113				200				15				129
Out-of-service days for cold-stacked status	76				61				48				153				184
Operating Revenues:
Time charter	$	13,672			$	13,605			$	11,767			$	13,840			$	14,798
Other marine services		296				514				420				678				414
		13,968				14,119				12,187				14,518				15,212
Direct Costs and Expenses:
Operating:
Personnel		5,171				3,795				3,811				4,129				4,023
Repairs and maintenance		1,564				1,580				1,246				973				1,387
Drydocking		104				200				414				146				20
Insurance and loss reserves		451				430				339				408				333
Fuel, lubes and supplies		482				955				665				769				701
Other		1,771				819				683				635				567
		9,543				7,779				7,158				7,060				7,031
Direct Vessel Profit (1)	$	4,425			$	6,340			$	5,029			$	7,458			$	8,181
Other Costs and Expenses:
Lease expense	$	46			$	32			$	45			$	42			$	43
Depreciation and amortization		4,379				3,921				3,790				3,963				3,914
Latin America
Time Charter Statistics:
Average rates per day worked	$	13,355			$	10,752			$	9,397			$	8,649			$	6,867
Fleet utilization		99	%			97	%			93	%			69	%			71	%
Fleet available days		655				408				389				429				399
Out-of-service days for repairs, maintenance and drydockings		7				—			3				35				5
Out-of-service days for cold-stacked status		—				—				—			65				92
Operating Revenues:
Time charter	$	8,621			$	4,251			$	3,396			$	2,541			$	1,951
Bareboat charter		—				—				-				102				1,168
Other marine services		212				168				149				261				221
		8,833				4,419				3,545				2,904				3,340
Direct Costs and Expenses:
Operating:
Personnel		2,342				1,377				1,215				1,081				846
Repairs and maintenance		704				255				392				234				298
Drydocking		—				—				(114	)			114				—
Insurance and loss reserves		138				105				69				79				31
Fuel, lubes and supplies		307				132				135				127				187
Other		444				123				305				188				(87	)
		3,935				1,992				2,002				1,823				1,275
Direct Vessel Profit (1)	$	4,898			$	2,427			$	1,543			$	1,081			$	2,065
Other Costs and Expenses:
Lease expense	$	9			$	9			$	9			$	9			$	—
Depreciation and amortization		1,708				950				899				1,037				1,573

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Europe, Continuing Operations
Time Charter Statistics:
Average rates per day worked		3,434				3,436				3,471				3,505				3,146
Fleet utilization		93	%			87	%			73	%			80	%			96	%
Fleet available days		3,756				3,521				3,398				3,373				3,439
Out-of-service days for repairs, maintenance and drydockings	81				117				122				107				3
Out-of-service days for cold-stacked status		92				—				—				—			92
Operating Revenues:
Time charter	$	11,984			$	10,529			$	8,657			$	9,427			$	10,346
Bareboat charter		(55	)															—
Other marine services		839				633				351				1,100				1,586
		12,768				11,162				9,008				10,527				11,932
Direct Costs and Expenses:
Operating:
Personnel		3,922				3,376				3,057				3,224				3,349
Repairs and maintenance		967				783				1,114				752				979
Drydocking		—				—				—				1				1
Insurance and loss reserves		239				512				203				241				233
Fuel, lubes and supplies		354				292				271				289				322
Other		144				174				101				160				147
		5,626				5,137				4,746				4,667				5,031
Direct Vessel Profit for Continuing Operations (1)	$	7,142			$	6,025			$	4,262			$	5,860			$	6,901
Other Costs and Expenses:
Lease expense	$	189			$	156			$	89			$	479			$	591
Depreciation and amortization		2,898				2,299				2,350				2,330				2,289

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Anchor handling towing supply
Time Charter Statistics:
Average rates per day worked	$	7,388			$	8,383			$	8,012			$	8,095			$	7,790
Fleet utilization		54	%			43	%			39	%			48	%			53	%
Fleet available days		644				667				709				705				736
Out-of-service days for repairs, maintenance and drydockings	21				76				74				33				10
Out-of-service days for cold-stacked status	276				273				273				337				332
Operating Revenues:
Time charter	$	2,564			$	2,413			$	2,225			$	2,714			$	3,059
Other marine services		(147	)			(137	)			559				1,076				365
		2,417				2,276				2,784				3,790				3,424
Direct Costs and Expenses:
Operating:
Personnel		950				853				892				1,212				1,418
Repairs and maintenance		432				679				408				330				524
Drydocking		(2	)			(19	)			22				-				8
Insurance and loss reserves		139				159				45				208				179
Fuel, lubes and supplies		148				168				216				145				252
Other		370				341				259				366				404
		2,037				2,181				1,842				2,261				2,785
Direct Vessel Profit (Loss) (1)	$	380			$	95			$	942			$	1,529			$	639
Other Costs and Expenses:
Lease expense	$	505			$	518			$	1,216			$	872			$	1,357
Depreciation and amortization		495				500				561				522				568
Fast support
Time Charter Statistics:
Average rates per day worked	$	8,421			$	8,590			$	8,472			$	8,257			$	8,133
Fleet utilization		63	%			72	%			76	%			78	%			78	%
Fleet available days		2,300				2,426				2,521				2,935				3,156
Out-of-service days for repairs, maintenance and drydockings	71				137				156				82				81
Out-of-service days for cold-stacked status	421				285				273				341				459
Operating Revenues:
Time charter	$	12,212			$	15,078			$	16,284			$	18,877			$	20,079
Bareboat charter		731				723				724				732				597
Other marine services		(256	)			(372	)			(355	)			(40	)			(200	)
		12,687				15,429				16,653				19,569				20,476
Direct Costs and Expenses:
Operating:
Personnel		4,180				4,166				4,659				5,071				5,486
Repairs and maintenance		1,642				1,922				2,278				1,873				2,204
Drydocking		587				274				36				357				(27	)
Insurance and loss reserves		353				304				332				541				347
Fuel, lubes and supplies		976				1,180				904				1,098				1,395
Other		1,489				1,203				1,000				1,346				959
		9,227				9,049				9,209				10,286				10,364
Direct Vessel Profit (1)	$	3,460			$	6,380			$	7,444			$	9,283			$	10,112
Other Costs and Expenses:
Lease expense	$	351			$	352			$	352			$	352			$	351
Depreciation and amortization		5,105				5,405				5,118				5,447				5,646

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Supply
Time Charter Statistics:
Average rates per day worked	$	11,355			$	8,477			$	7,360			$	7,179			$	6,755
Fleet utilization		74	%			83	%			79	%			87	%			96	%
Fleet available days		1,257				527				2,521				338				398
Out-of-service days for repairs, maintenance and drydockings		23				13				3				—				—
Out-of-service days for cold-stacked status		229				61				—				—				—
Operating Revenues:
Time charter	$	10,541			$	3,713			$	2,520			$	2,114			$	2,589
Bareboat charter		(55	)			—				—				102				1,168
Other marine services		92				(53	)			(69	)			582				863
		10,578				3,660				2,451				2,798				4,620
Direct Costs and Expenses:
Operating:
Personnel		3,821				1,591				1,206				1,369				1,266
Repairs and maintenance		968				375				348				159				276
Drydocking		—				197				—				142				1
Insurance and loss reserves		230				106				67				65				66
Fuel, lubes and supplies		601				219				119				377				205
Other		1,022				246				397				314				57
		6,642				2,734				2,137				2,426				1,871
Direct Vessel Profit (Loss) (1)	$	3,936			$	926			$	314			$	372			$	2,749
Other Costs and Expenses:
Lease expense	$	—			$	—			$	—			$	381			$	517
Depreciation and amortization		2,673				1,000				787				823				1,167
Specialty
Time Charter Statistics:
Fleet available days		42				91				91				92				92
Out-of-service days for cold-stacked status		42				91				91				92				92
Operating Revenues:
Other marine services	$	—			$	—			$	—			$	—			$	—
Direct Costs and Expenses:
Operating:
Personnel		—				—				13				6				13
Repairs and maintenance		35				46				11				5				1
Insurance and loss reserves		13				16				20				9				18
Fuel, lubes and supplies		(8	)			(2	)			22				—				2
Other		32				67				101				64				75
		72				127				167				84				109
Direct Vessel Loss (1)	$	(72	)		$	(127	)		$	(167	)		$	(84	)		$	(109	)
Other Costs and Expenses:
Operating:
Depreciation and amortization	$	27			$	127			$	128			$	128			$	128

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Liftboats
Time Charter Statistics:
Average rates per day worked	$	27,947			$	24,894			$	27,513			$	27,453			$	26,172
Fleet utilization		23	%			30	%			31	%			36	%			39	%
Fleet available days		1,472				1,456				1,456				1,472				1,665
Out-of-service days for repairs, maintenance and drydockings	64				9				141				6				153
Out-of-service days for cold-stacked status		899				816				664				657				432
Operating Revenues:
Time charter	$	9,319			$	11,001			$	12,339			$	14,375			$	16,830
Other marine services		316				306				250				732				795
		9,635				11,307				12,589				15,107				17,625
Direct Costs and Expenses:
Operating:
Personnel		3,963				3,545				4,097				4,588				4,824
Repairs and maintenance		624				407				650				776				1,656
Drydocking		—				111				1,307				267				532
Insurance and loss reserves		1,055				893				679				711				484
Fuel, lubes and supplies		370				343				490				550				899
Other		538				219				147				338				221
		6,550				5,518				7,370				7,230				8,616
Direct Vessel Profit (1)	$	3,085			$	5,789			$	5,219			$	7,877			$	9,009
Other Costs and Expenses:
Lease expense	$	31			$	44			$	1,497			$	1,497			$	1,498
Depreciation and amortization		5,980				6,081				6,128				6,136				6,247
Crew transfer
Time Charter Statistics:
Average rates per day worked	$	2,565			$	2,481			$	2,375			$	2,378			$	2,220
Fleet utilization		95	%			87	%			72	%			77	%			92	%
Fleet available days		3,664				3,521				3,458				3,465				3,531
Out-of-service days for repairs, maintenance and drydockings	81				117				122				111				52
Out-of-service days for cold-stacked status		—				—				48				92				184
Operating Revenues:
Time charter	$	8,950			$	7,602			$	5,922			$	6,385			$	7,190
Other marine services		710				548				315				389				577
		9,660				8,150				6,237				6,774				7,767
Direct Costs and Expenses:
Operating:
Personnel		3,184				2,721				2,592				2,435				2,432
Repairs and maintenance		891				754				1,056				693				775
Drydocking		—				3				—				—				—
Insurance and loss reserves		109				100				99				124				113
Fuel, lubes and supplies		263				230				230				220				152
Other		80				115				86				75				96
		4,527				3,923				4,063				3,547				3,568
Direct Vessel Profit (1)	$	5,133			$	4,227			$	2,174			$	3,227			$	4,199
Other Costs and Expenses:
Lease expense	$	107			$	67			$	-			$	-			$	-
Depreciation and amortization		1,766				1,637				1,717				1,837				1,819

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

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Other Activity
Operating Revenues:
Other marine services	$	720			$	1,056			$	1,029			$	1,032			$	788
		720				1,056				1,029				1,032				788
Direct Costs and Expenses:
Operating:
Personnel		415				502				247				415				440
Repairs and maintenance		47				128				53				147				59
Insurance and loss reserves		(26	)			11				(303	)			5				(9	)
Fuel, lubes and supplies		38				157				86				19				5
Other		(401	)			(417	)			(251	)			(442	)			(598	)
		73				381				(168	)			144				(102	)
Direct Vessel Profit (1)	$	647			$	675			$	1,197			$	888			$	890
Other Costs and Expenses:
Lease expense	$	396			$	374			$	342			$	468			$	430
Depreciation and amortization		567				563				562				519				516

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (NON-GAAP PRESENTATION)
(in thousands)

	Three Months Ended
	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
Cash Flows from Continuing Operating Activities:
DVP (1)		16,569				17,965				17,123				23,092				27,489
Operating, leased-in equipment (excluding amortization of deferred gains)		(3,600	)			(3,814	)			(3,838	)			(4,648	)			(4,963	)
Administrative and general (excluding provisions for bad debts and amortization of share awards)		(8,766	)			(13,352	)			(9,776	)			(10,773	)			(9,160	)
SEACOR Holdings management and guarantee fees		(11	)			(9	)			(16	)			(21	)			(26	)
Dividends received from 50% or less owned companies		2,117				—				—				800				873
Other, net (excluding non-cash losses)		—				—				—				(2	)			—
		6,309				790				3,493				8,448				14,213
Changes in operating assets and liabilities before interest and income taxes		74				(9,293	)			(7,144	)			7,758				(7,236	)
Director share awards		—				755				—				—				—
Restricted stock vested		—				(3	)			(175	)			(55	)			(240	)
Cash settlements on derivative transactions, net		(445	)			(279	)			(214	)			(190	)			(546	)
Interest paid, excluding capitalized interest (1)		(6,071	)			(4,529	)			(4,744	)			(6,255	)			(5,633	)
Interest received		50				529				676				560				316
Income taxes refunded, net		(829	)			—				—				—				—
Net cash (used in) provided operating activities		(912	)			(12,030	)			(8,108	)			10,266				874
Cash Flows from Continuing Investing Activities:
Purchases of property and equipment		(5,166	)			(8,530	)			(11,244	)			(5,890	)			(9,547	)
Proceeds from disposition of property and equipment		3,539				14,030				3,105				36,418				10,119
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
Net investing activities in property and equipment		(1,627	)			800				1,009				58,046				2,523
Investments in and advances to 50% or less owned companies		(907	)			(56	)			(245	)			(6,062	)			(8,686	)
Capital distributions from equity investees		—				—				—				48				413
Principal payments on notes due from equity investees		490				—				—				—				22
Net cash provided by (used in) investing activities		(2,044	)			744				764				52,032				(5,728	)
Cash Flows from Continuing Financing Activities:
Payments on long-term debt		(8,246	)			(3,502	)			(5,222	)			(3,899	)			(11,976	)
Proceeds from issuance of debt, net of offering costs		1,089				—				—				—				—
Proceeds from exercise of stock options and Warrants		2				—				—				340				973
Net cash (used in) provided by financing activities		(7,155	)			(3,502	)			(5,222	)			(3,559	)			(11,003	)
Effects of Exchange Rate Changes on Cash and Cash Equivalents		592				265				(1,908	)			(19,238	)			(472	)
Net Change in Cash, Cash Equivalents and Restricted Cash		(9,519	)			(14,523	)			(14,474	)			39,501				(16,329	)
Cash Flows from Discontinued Operations
Operating Activities		—				—				—				4,297				(446	)
Investing Activities		—				—				—				(4,462	)			(116	)
Effects of FX Rate Changes on Cash and Cash Equivalents		—				—				—				3,322				268
Net Decrease in Cash and Cash Equivalents from Discontinued Operations:		—				—				—				3,157				(294	)
Net Change in Cash, Cash Equivalents and Restricted Cash		(9,519	)			(14,523	)			(14,474	)			42,658				(16,623	)
Cash, Restricted Cash and Cash Equivalents, Beginning of Period		58,050				72,573				87,047				44,389				61,012
Cash, Restricted Cash and Cash Equivalents, End of Period	$	48,531			$	58,050			$	72,573			$	87,047			$	44,389

SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	Sep. 30, 2020				Jun. 30, 2020				Mar. 31, 2020				Dec. 31, 2019				Sep. 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	45,179			$	54,698			$	69,220			$	83,943			$	38,155
Restricted cash		3,352				3,352				3,353				3,104				4,016
Receivables:
Trade, net of allowance for doubtful accounts		54,935				57,892				48,192				49,128				58,954
Other		17,914				14,362				27,872				18,531				6,835
Receivables from SEACOR Holdings		18,814				14,394				—				—				—
Tax Receivable		11,770
Inventories		573				1,409				1,575				1,228				1,408
Prepaid expenses and other		3,598				3,218				2,653				2,612				3,146
Discontinued operations		—				—				—				—				13,127
Total current assets		156,135				149,325				152,865				158,546				125,641
Property and Equipment:
Historical cost		1,078,169				1,066,239				930,264				976,978				1,063,290
Accumulated depreciation		(334,387	)			(322,378	)			(312,911	)			(358,962	)			(400,628	)
		743,782				743,861				617,353				618,016				662,662
Construction in progress		56,709				55,955				55,302				74,344				70,275
Net property and equipment		800,491				799,816				672,655				692,360				732,937
Right-of-Use Asset - Operating Leases		8,327				8,818				8,990				17,313				18,774
Right-of-Use Asset - Finance Lease		137
Investments, at Equity, and Advances to 50% or Less Owned Companies		88,933				90,900				125,010				124,680				118,222
Construction Reserve Funds		—				—				3,745				12,893				18,161
Other Assets		3,152				3,243				3,270				3,401				3,422
Discontinued operations		—				—				—				—				23,349
	$	1,057,175			$	1,052,102			$	966,535			$	1,009,193			$	1,040,506
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities	$	9,632			$	11,765			$	13,359			$	15,099			$	15,182
Current lease liability - Finance		27				-				-				-				-
Current portion of long-term debt		52,108				51,793				37,084				17,802				23,446
Accounts payable and accrued expenses		29,542				22,382				32,023				25,691				26,507
Due to SEACOR Holdings		—				—				66				74				77
Other current liabilities		30,178				30,162				29,949				36,151				42,372
Discontinued operations		—				—				—				—				3,813
Total current liabilities		121,487				116,102				112,481				94,817				111,397
Long-Term Operating Lease Liabilities		5,694				6,545				7,859				9,822				12,878
Long-Term Finance Lease Liabilities		113				-				-				-				-
Long-Term Debt		452,964				447,663				356,729				380,251				375,772
Conversion Option Liability on Convertible Senior Notes		1				6				91				5,205				4,543
Deferred Income Taxes		36,452				24,101				26,113				33,905				36,921
Deferred Gains and Other Liabilities		3,810				6,321				7,951				6,269				4,848
Total liabilities		620,521				600,738				511,224				530,269				546,359
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock		235				232				231				219				219
Additional paid-in capital		450,320				449,116				447,425				429,318				427,823
(Accumulated Deficit) Retained earnings		(13,023	)			5,058				11,131				27,076				64,929
Shares held in treasury		(848	)			(847	)			(844	)			(669	)			(614	)
Accumulated other comprehensive loss, net of tax		(380	)			(2,541	)			(2,971	)			1,548				(21,105	)
		436,304				451,018				454,972				457,492				471,252
Noncontrolling interests in subsidiaries		350				346				339				21,432				22,895
Total equity		436,654				451,364				455,311				478,924				494,147
	$	1,057,175			$	1,052,102			$	966,535			$	1,009,193			$	1,040,506

SEACOR MARINE HOLDINGS INC.
UNAUDITED FLEET COUNTS

		Owned				Joint Ventured				Leased-in				Managed				Total
September 30, 2020
AHTS			4				—				3				—				7
FSV			26				5				1				1				33
Supply			14				27				—				2				43
Specialty			—				3								—				3
Liftboats			14				—				2				—				16
Crew transfer			41				4				—				—				45
			99				39				6				3				147
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

FAQ

What were SEACOR Marine's earnings for Q3 2020?

SEACOR Marine reported a net loss of $18.1 million for Q3 2020.

How did oil price volatility affect SEACOR Marine's Q3 results?

Oil price volatility negatively impacted revenues and demand for SEACOR Marine's services in Q3 2020.

What is the significance of SEACOR Marine's acquisition of SEACOSCO?

The acquisition of SEACOSCO added eight modern vessels and is expected to enhance performance and operational capabilities.

What cost reduction initiatives did SEACOR Marine implement?

SEACOR Marine's Transformation Plan led to $8 million in annual savings through various cost control measures.

What challenges did SEACOR Marine face in Q3 2020?

Challenges included disruptions from COVID-19, hurricanes, and decreased demand in international markets.