SMHI SEACOR Marine Holdings Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2024

SEACOR Marine Holdings Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	001-37966	47-2564547
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

12121 Wickchester Lane, Suite 500, Houston, TX	77079
(Address of Principal Executive Offices)	(Zip Code)
Registrant's telephone number, including area code	(346) 980-1700

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	SMHI	New York Stock Exchange (“NYSE”)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition

The information set forth in (and incorporated by reference into) this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 31, 2024, SEACOR Marine Holdings Inc. issued a press release setting forth its earnings for the three and six months ended June 30, 2024 (the “Earnings Release”).

A copy of the Earnings Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

 

Exhibit No.	Description
99.1	Press Release of SEACOR Marine Holdings Inc. dated July 31, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	SEACOR Marine Holdings Inc.
July 31, 2024	By:	/s/ John Gellert
		Name: John Gellert
		Title: President and Chief Executive Officer

 

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Exhibit 99.1

	PRESS RELEASE

SEACOR MARINE ANNOUNCES SECOND QUARTER 2024 RESULTS

Houston, Texas

July 31, 2024

FOR IMMEDIATE RELEASE - SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its second quarter ended June 30, 2024.

 

SEACOR Marine’s consolidated operating revenues for the second quarter of 2024 were $69.9 million, operating loss was $3.9 million, and direct vessel profit (“DVP”)(1) was $20.3 million. This compares to consolidated operating revenues of $68.3 million, operating income of $2.9 million, and DVP of $30.6 million in the second quarter of 2023, and consolidated operating revenues of $62.8 million, operating loss of $10.6 million, and DVP of $14.7 million in the first quarter of 2024.

 

Notable second quarter items include:

 

For the second quarter of 2024, net loss was $12.5 million ($0.45 loss per basic and diluted share). This compares to a net loss for the second quarter of 2023 of $4.6 million ($0.17 loss per basic and diluted share). Sequentially, the second quarter 2024 results compare to a net loss of $23.1 million ($0.84 earnings per basic and diluted share) in the first quarter of 2024.

 

Chief Executive Officer John Gellert commented:

 

“During the second quarter, we continued to reprice our fleet at significantly improved day rates while working through a period of lower utilization. Our lower utilization was primarily driven by planned drydockings and major repairs as part of a heavier 2024 maintenance schedule, some of which have taken longer than expected as shipyards and vendors continue to address various capacity challenges. Utilization was also affected by near-term softer demand in the U.S. and longer re-marketing time between jobs internationally. We observed delays in the project schedules of our customers in the U.S., particularly in decommissioning and offshore wind, as properties with asset removal obligations in the U.S. Gulf of Mexico rotate to new customers and decisions are more generally deferred until after the U.S. election.

 

Looking forward, we currently have $403.9 million of contracted revenue backlog, including options, with an average contract duration of approximately one year. We continue to hit the mark on average day rates and achieve improved pricing as contracts roll off. Despite various capacity challenges, we are well advanced in this year’s maintenance schedule, which should translate into improved utilization for the rest of 2024 and into 2025. Utilization improvement, coupled with the more favorable pricing we are already experiencing, should lead to significant improvements in performance. We also continue to invest in our fleet. Over the next 12 months we will install hybrid battery systems on four of our platform supply vessels (“PSVs”). Once installations are completed, 11 of our 21 PSVs will be hybrid powered, comprising one of the youngest and most technologically advanced PSV fleets in the industry. I am very optimistic about the position of our fleet to benefit from improved market fundamentals.”

___________________

(1)	Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs.

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lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

* * * * *

SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

 

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

 

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.

For all other requests, contact InvestorRelations@seacormarine.com

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SEACOR MARINE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except share data)

 

		Three Months Ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Operating Revenues		$	69,867			$	68,319			$	132,637			$	129,528
Costs and Expenses:
Operating			49,520				37,730				97,619				76,239
Administrative and general			10,889				13,704				22,806				25,336
Lease expense			486				698				967				1,418
Depreciation and amortization			12,939				13,575				25,821				27,337
			73,834				65,707				147,213				130,330
Gains on Asset Dispositions and Impairments, Net			37				265				36				3,864
Operating (Loss) Income			(3,930	)			2,877				(14,540	)			3,062
Other Income (Expense):
Interest income			445				422				1,038				882
Interest expense			(10,190	)			(8,736	)			(20,499	)			(17,524	)
Derivative gains (losses), net			104				—				(439	)			—
Foreign currency losses, net			(560	)			(603	)			(640	)			(1,428	)
Other, net			—				—				(95	)			—
			(10,201	)			(8,917	)			(20,635	)			(18,070	)
Loss Before Income Tax (Benefit) Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies			(14,131	)			(6,040	)			(35,175	)			(15,008	)
Income Tax (Benefit) Expense			(682	)			(1,096	)			243				61
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies			(13,449	)			(4,944	)			(35,418	)			(15,069	)
Equity in Earnings (Losses) of 50% or Less Owned Companies			966				373				(134	)			909
Net Loss		$	(12,483	)		$	(4,571	)		$	(35,552	)		$	(14,160	)
Net Loss Per Share:
Basic		$	(0.45	)		$	(0.17	)		$	(1.29	)		$	(0.52	)
Diluted		$	(0.45	)		$	(0.17	)		$	(1.29	)		$	(0.52	)
Weighted Average Common Stock and Warrants Outstanding:
Basic			27,729,033				27,137,873				27,536,319				26,981,004
Diluted			27,729,033				27,137,873				27,536,319				26,981,004

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(in thousands, except statistics and per share data)

						Three Months Ended
		Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023
Time Charter Statistics:
Average Rates Per Day		$	19,141			$	19,042			$	18,031			$	18,046			$	15,250
Fleet Utilization			69	%			62	%			71	%			73	%			78	%
Fleet Available Days (2)			4,994				5,005				5,170				5,182				5,096
Operating Revenues:
Time charter		$	65,649			$	59,263			$	66,498			$	68,668			$	60,804
Bareboat charter			364				364				368				368				364
Other marine services			3,854				3,143				6,217				7,864				7,151
			69,867				62,770				73,083				76,900				68,319
Costs and Expenses:
Operating:
Personnel			21,566				21,670				22,080				19,943				19,944
Repairs and maintenance			10,244				9,763				7,604				7,418				5,793
Drydocking			6,210				6,706				2,561				1,768				2,256
Insurance and loss reserves			3,099				1,738				2,944				1,833				2,390
Fuel, lubes and supplies			3,966				4,523				3,683				5,047				3,638
Other			4,435				3,699				4,397				4,133				3,709
			49,520				48,099				43,269				40,142				37,730
Direct Vessel Profit (1)			20,347				14,671				29,814				36,758				30,589
Other Costs and Expenses:
Lease expense			486				481				679				651				698
Administrative and general			10,889				11,917				11,547				12,300				13,704
Depreciation and amortization			12,939				12,882				13,022				13,462				13,575
			24,314				25,280				25,248				26,413				27,977
Gains (Losses) on Asset Dispositions and Impairments, Net			37				(1	)			18,057				(512	)			265
Operating (Loss) Income			(3,930	)			(10,610	)			22,623				9,833				2,877
Other Income (Expense):
Interest income			445				593				222				340				422
Interest expense			(10,190	)			(10,309	)			(10,444	)			(9,536	)			(8,736	)
Derivative gains (losses), net			104				(543	)			608				—				—
Loss on debt extinguishment			—				—				—				(2,004	)			—
Foreign currency (losses) gains, net			(560	)			(80	)			(1,276	)			571				(603	)
Other, net			—				(95	)			—				—				—
			(10,201	)			(10,434	)			(10,890	)			(10,629	)			(8,917	)
(Loss) Income Before Income Tax (Benefit) Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies			(14,131	)			(21,044	)			11,733				(796	)			(6,040	)
Income Tax (Benefit) Expense			(682	)			925				6,378				2,360				(1,096	)
(Loss) Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies			(13,449	)			(21,969	)			5,355				(3,156	)			(4,944	)
Equity in Earnings (Losses) of 50% or Less Owned Companies			966				(1,100	)			374				2,273				373
Net (Loss) Income		$	(12,483	)		$	(23,069	)		$	5,729			$	(883	)		$	(4,571	)
Net (Loss) Earnings Per Share:
Basic		$	(0.45	)		$	(0.84	)		$	0.21			$	(0.03	)		$	(0.17	)
Diluted		$	(0.45	)		$	(0.84	)		$	0.20			$	(0.03	)		$	(0.17	)
Weighted Average Common Stock and Warrants Outstanding:
Basic			27,729				27,344				27,182				27,182				27,138
Diluted			27,729				27,344				28,401				27,182				27,138
Common Shares and Warrants Outstanding at Period End			28,941				28,906				28,489				28,481				28,481

 

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT

(in thousands, except statistics)

		Three Months Ended
		Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked		$	22,356			$	28,156			$	22,584			$	23,663			$	16,115
Fleet utilization			37	%			27	%			50	%			57	%			35	%
Fleet available days			921				927				1,152				1,196				1,080
Out-of-service days for repairs, maintenance and drydockings			179				137				61				151				229
Out-of-service days for cold-stacked status (2)			127				182				254				206				173
Operating Revenues:
Time charter		$	7,697			$	6,957			$	12,929			$	16,236			$	6,121
Other marine services			480				1,026				5,346				5,478				3,004
			8,177				7,983				18,275				21,714				9,125
Direct Costs and Expenses:
Operating:
Personnel			6,284				5,781				6,906				6,712				5,957
Repairs and maintenance			1,879				1,404				819				1,560				1,573
Drydocking			2,570				1,968				303				462				1,506
Insurance and loss reserves			943				396				1,297				332				1,082
Fuel, lubes and supplies			866				667				1,032				958				924
Other			226				(171	)			475				375				346
			12,768				10,045				10,832				10,399				11,388
Direct Vessel Profit (Loss) (1)		$	(4,591	)		$	(2,062	)		$	7,443			$	11,315			$	(2,263	)
Other Costs and Expenses:
Lease expense		$	141			$	138			$	141			$	116			$	143
Depreciation and amortization			3,194				2,750				3,479				3,810				3,861
Africa and Europe
Time Charter Statistics:
Average rates per day worked		$	18,580			$	15,197			$	15,233			$	15,388			$	14,982
Fleet utilization			74	%			76	%			82	%			84	%			94	%
Fleet available days			1,969				1,775				1,748				1,748				1,729
Out-of-service days for repairs, maintenance and drydockings			203				238				124				111				58
Out-of-service days for cold-stacked status (3)			91				91				92				54				—
Operating Revenues:
Time charter		$	27,047			$	20,555			$	21,791			$	22,528			$	24,414
Other marine services			1,028				169				189				1,943				225
			28,075				20,724				21,980				24,471				24,639
Direct Costs and Expenses:
Operating:
Personnel			4,969				5,181				6,007				5,089				4,833
Repairs and maintenance			3,161				3,209				2,807				2,214				2,050
Drydocking			1,226				2,032				1,298				320				144
Insurance and loss reserves			819				334				416				573				420
Fuel, lubes and supplies			1,170				1,287				623				2,573				1,419
Other			2,801				2,199				2,267				2,448				2,608
			14,146				14,242				13,418				13,217				11,474
Direct Vessel Profit (1)		$	13,929			$	6,482			$	8,562			$	11,254			$	13,165
Other Costs and Expenses:
Lease expense		$	172			$	178			$	289			$	372			$	408
Depreciation and amortization			4,565				3,915				3,747				3,821				3,853

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (continued)

(in thousands, except statistics)

		Three Months Ended
		Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023
Middle East and Asia
Time Charter Statistics:
Average rates per day worked		$	17,083			$	16,934			$	17,590			$	16,313			$	13,245
Fleet utilization			82	%			71	%			69	%			67	%			86	%
Fleet available days			1,296				1,365				1,461				1,472				1,456
Out-of-service days for repairs, maintenance and drydockings			168				224				360				297				58
Operating Revenues:
Time charter		$	18,073			$	16,477			$	17,729			$	16,087			$	16,563
Other marine services			619				350				539				267				3,512
			18,692				16,827				18,268				16,354				20,075
Direct Costs and Expenses:
Operating:
Personnel			6,930				5,963				5,522				5,157				5,266
Repairs and maintenance			3,443				2,712				2,590				2,623				1,219
Drydocking			707				1,483				624				1,056				(684	)
Insurance and loss reserves			798				618				1,022				711				720
Fuel, lubes and supplies			1,103				1,198				1,242				743				425
Other			989				1,000				1,133				943				389
			13,970				12,974				12,133				11,233				7,335
Direct Vessel Profit (1)		$	4,722			$	3,853			$	6,135			$	5,121			$	12,740
Other Costs and Expenses:
Lease expense		$	71			$	85			$	158			$	59			$	67
Depreciation and amortization			3,247				3,496				3,643				3,721				3,708
Latin America
Time Charter Statistics:
Average rates per day worked		$	22,437			$	28,308			$	20,745			$	20,656			$	18,846
Fleet utilization			71	%			58	%			84	%			87	%			88	%
Fleet available days (2)			808				938				809				766				831
Out-of-service days for repairs, maintenance and drydockings			41				1				—				67				79
Operating Revenues:
Time charter		$	12,832			$	15,274			$	14,049			$	13,817			$	13,706
Bareboat charter			364				364				368				368				364
Other marine services			1,727				1,598				143				176				410
			14,923				17,236				14,560				14,361				14,480
Direct Costs and Expenses:
Operating:
Personnel			3,383				4,745				3,645				2,985				3,888
Repairs and maintenance			1,761				2,438				1,388				1,021				951
Drydocking			1,707				1,223				336				(70	)			1,290
Insurance and loss reserves			539				390				209				217				168
Fuel, lubes and supplies			827				1,371				786				773				870
Other			419				671				522				367				366
			8,636				10,838				6,886				5,293				7,533
Direct Vessel Profit (1)		$	6,287			$	6,398			$	7,674			$	9,068			$	6,947
Other Costs and Expenses:
Lease expense		$	102			$	80			$	91			$	104			$	80
Depreciation and amortization			1,933				2,721				2,153				2,110				2,153

 

 

 

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED PERFORMANCE BY VESSEL CLASS

(in thousands, except statistics)

 

		Three Months Ended
		Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023
AHTS
Time Charter Statistics:
Average rates per day worked		$	8,125			$	8,538			$	8,937			$	9,947			$	8,916
Fleet utilization			49	%			75	%			64	%			50	%			85	%
Fleet available days			364				364				368				368				364
Out-of-service days for repairs, maintenance and drydockings			29				—				41				111				13
Out-of-service days for cold-stacked status			91				91				92				54				—
Operating Revenues: