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): October 30, 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 October 30, 2024, SEACOR Marine Holdings Inc. issued a press release setting forth its earnings for the three and nine months ended September 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 October 30, 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.
October 30, 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 THIRD QUARTER 2024 RESULTS

Houston, Texas

October 30, 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 third quarter ended September 30, 2024.

 

SEACOR Marine’s consolidated operating revenues for the third quarter of 2024 were $68.9 million, operating loss was $6.5 million, and direct vessel profit (“DVP”)(1) was $16.0 million. This compares to consolidated operating revenues of $76.9 million, operating income of $9.8 million, and DVP of $36.8 million in the third quarter of 2023, and consolidated operating revenues of $69.9 million, operating loss of $3.9 million, and DVP of $20.3 million in the second quarter of 2024.

 

Notable third quarter items include:

 

For the third quarter of 2024, net loss was $16.3 million ($0.59 loss per basic and diluted share). This compares to a net loss for the third quarter of 2023 of $0.9 million ($0.03 loss per basic and diluted share). Sequentially, the third quarter 2024 results compare to a net loss of $12.5 million ($0.45 earnings per basic and diluted share) in the second quarter of 2024.

 

Chief Executive Officer John Gellert commented:

 

“The third quarter results reflect overall lower utilization driven by our heavy 2024 maintenance schedule and softer than expected demand during the quarter, particularly in the U.S. Gulf of Mexico and the North Sea markets. While we made progress in remarketing and repositioning our available tonnage, these efforts reduced the utilization of these vessels during the quarter. Our utilization figures were also affected by continuing work on drydockings and major repairs, some of which experienced additional delays as a result of ongoing shipyard and vendor capacity issues. We continue to see challenges as shipyards and other vendors expand their support teams, expertise and production capacity to respond to demand growth. In addition to lower utilization, these results also reflect higher operating expenses, driven mostly by 9.9% higher crewing costs and 30.0% higher maintenance costs relative to the year to date third quarter of 2023, both of which we attribute primarily to increased industry demand and vendor capacity constraints. Nevertheless, our average day rates held steady and we continued to add charters that will contribute improvements to our utilization, with contracted revenue backlog, including options, in excess of $360.0 million.

 

In the near term, one of our premium liftboats located in the U.S. Gulf of Mexico will return to work in early November after being in the shipyard for maintenance since April. We are also seeing a stronger volume of inquiries for decommissioning work for our liftboats in the 2025-2026 timeframe, which is coming from both the U.S. Gulf of Mexico as well as international markets. We own one of the youngest and most fuel efficient and versatile fleets of offshore vessels in the world. Although demand for our services remains highly correlated to the underlying commodity prices, which have been very volatile during 2024, we are well positioned to capture attractive opportunities servicing offshore energy.”

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___________________

(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. 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 September 30,								Nine months ended September 30,
		2024				2023				2024				2023
Operating Revenues		$	68,916			$	76,900			$	201,553			$	206,428
Costs and Expenses:
Operating			52,907				40,142				150,526				116,381
Administrative and general			11,019				12,300				33,825				37,636
Lease expense			364				651				1,331				2,069
Depreciation and amortization			12,928				13,462				38,749				40,799
			77,218				66,555				224,431				196,885
Gains (Losses) on Asset Dispositions and Impairments, Net			1,821				(512	)			1,857				3,352
Operating (Loss) Income			(6,481	)			9,833				(21,021	)			12,895
Other Income (Expense):
Interest income			358				340				1,396				1,222
Interest expense			(10,127	)			(9,536	)			(30,626	)			(27,060	)
Loss on debt extinguishment			—				(2,004	)			—				(2,004	)
Derivative gains (losses), net			67				—				(372	)			—
Foreign currency (losses) gains, net			(1,717	)			571				(2,357	)			(857	)
Other, net			29				—				(66	)			—
			(11,390	)			(10,629	)			(32,025	)			(28,699	)
Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies			(17,871	)			(796	)			(53,046	)			(15,804	)
Income Tax (Benefit) Expense			(513	)			2,360				(270	)			2,421
Loss Before Equity in Earnings of 50% or Less Owned Companies			(17,358	)			(3,156	)			(52,776	)			(18,225	)
Equity in Earnings of 50% or Less Owned Companies			1,012				2,273				878				3,182
Net Loss		$	(16,346	)		$	(883	)		$	(51,898	)		$	(15,043	)
Net Loss Per Share:
Basic		$	(0.59	)		$	(0.03	)		$	(1.88	)		$	(0.56	)
Diluted		$	(0.59	)		$	(0.03	)		$	(1.88	)		$	(0.56	)
Weighted Average Common Stock and Warrants Outstanding:
Basic			27,772,733				27,181,754				27,615,699				27,048,656
Diluted			27,772,733				27,181,754				27,615,699				27,048,656

 

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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
		Sep. 30, 2024				Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023
Time Charter Statistics:
Average Rates Per Day		$	18,879			$	19,141			$	19,042			$	18,031			$	18,046
Fleet Utilization			67	%			69	%			62	%			71	%			73	%
Fleet Available Days (2)			5,026				4,994				5,005				5,170				5,182
Operating Revenues:
Time charter		$	63,313			$	65,649			$	59,263			$	66,498			$	68,668
Bareboat charter			372				364				364				368				368
Other marine services			5,231				3,854				3,143				6,217				7,864
			68,916				69,867				62,770				73,083				76,900
Costs and Expenses:
Operating:
Personnel			21,940				21,566				21,670				22,080				19,943
Repairs and maintenance			9,945				10,244				9,763				7,604				7,418
Drydocking			6,068				6,210				6,706				2,561				1,768
Insurance and loss reserves			2,584				3,099				1,738				2,944				1,833
Fuel, lubes and supplies			6,574				3,966				4,523				3,683				5,047
Other			5,796				4,435				3,699				4,397				4,133
			52,907				49,520				48,099				43,269				40,142
Direct Vessel Profit (1)			16,009				20,347				14,671				29,814				36,758
Other Costs and Expenses:
Lease expense			364				486				481				679				651
Administrative and general			11,019				10,889				11,917				11,547				12,300
Depreciation and amortization			12,928				12,939				12,882				13,022				13,462
			24,311				24,314				25,280				25,248				26,413
Gains (Losses) on Asset Dispositions and Impairments, Net			1,821				37				(1	)			18,057				(512	)
Operating (Loss) Income			(6,481	)			(3,930	)			(10,610	)			22,623				9,833
Other Income (Expense):
Interest income			358				445				593				222				340
Interest expense			(10,127	)			(10,190	)			(10,309	)			(10,444	)			(9,536	)
Derivative gains (losses), net			67				104				(543	)			608				—
Loss on debt extinguishment			—				—				—				—				(2,004	)
Foreign currency (losses) gains, net			(1,717	)			(560	)			(80	)			(1,276	)			571
Other, net			29				—				(95	)			—				—
			(11,390	)			(10,201	)			(10,434	)			(10,890	)			(10,629	)
(Loss) Income Before Income Tax (Benefit) Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies			(17,871	)			(14,131	)			(21,044	)			11,733				(796	)
Income Tax (Benefit) Expense			(513	)			(682	)			925				6,378				2,360
(Loss) Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies			(17,358	)			(13,449	)			(21,969	)			5,355				(3,156	)
Equity in Earnings (Losses) of 50% or Less Owned Companies			1,012				966				(1,100	)			374				2,273
Net (Loss) Income		$	(16,346	)		$	(12,483	)		$	(23,069	)		$	5,729			$	(883	)
Net (Loss) Earnings Per Share:
Basic		$	(0.59	)		$	(0.45	)		$	(0.84	)		$	0.21			$	(0.03	)
Diluted		$	(0.59	)		$	(0.45	)		$	(0.84	)		$	0.20			$	(0.03	)
Weighted Average Common Stock and Warrants Outstanding:
Basic			27,773				27,729				27,344				27,182				27,182
Diluted			27,773				27,729				27,344				28,401				27,182
Common Shares and Warrants Outstanding at Period End			28,950				28,941				28,906				28,489				28,481

 

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT

(in thousands, except statistics)

		Three Months Ended
		Sep. 30, 2024				Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked		$	17,188			$	22,356			$	28,156			$	22,584			$	23,663
Fleet utilization			42	%			37	%			27	%			50	%			57	%
Fleet available days			920				921				927				1,152				1,196
Out-of-service days for repairs, maintenance and drydockings			116				179				137				61				151
Out-of-service days for cold-stacked status (2)			175				127				182				254				206
Operating Revenues:
Time charter		$	6,593			$	7,697			$	6,957			$	12,929			$	16,236
Other marine services			1,188				480				1,026				5,346				5,478
			7,781				8,177				7,983				18,275				21,714
Direct Costs and Expenses:
Operating:
Personnel			6,297				6,284				5,781				6,906				6,712
Repairs and maintenance			1,655				1,879				1,404				819				1,560
Drydocking			2,615				2,570				1,968				303				462
Insurance and loss reserves			799				943				396				1,297				332
Fuel, lubes and supplies			964				866				667				1,032				958
Other			225				226				(171	)			475				375
			12,555				12,768				10,045				10,832				10,399
Direct Vessel (Loss) Profit (1)		$	(4,774	)		$	(4,591	)		$	(2,062	)		$	7,443			$	11,315
Other Costs and Expenses:
Lease expense		$	140			$	141			$	138			$	141			$	116
Depreciation and amortization			3,194				3,194				2,750				3,479				3,810
Africa and Europe
Time Charter Statistics:
Average rates per day worked		$	18,875			$	18,580			$	15,197			$	15,233			$	15,388
Fleet utilization			77	%			74	%			76	%			82	%			84	%
Fleet available days			1,990				1,969				1,775				1,748				1,748
Out-of-service days for repairs, maintenance and drydockings			203				203				238				124				111
Out-of-service days for cold-stacked status			58				91				91				92				54
Operating Revenues:
Time charter		$	28,809			$	27,047			$	20,555			$	21,791			$	22,528
Other marine services			3,048				1,028				169				189				1,943
			31,857				28,075				20,724				21,980				24,471
Direct Costs and Expenses:
Operating:
Personnel			6,083				4,969				5,181				6,007				5,089
Repairs and maintenance			3,455				3,161				3,209				2,807				2,214
Drydocking			681				1,226				2,032				1,298				320
Insurance and loss reserves			599				819				334				416				573
Fuel, lubes and supplies			2,514				1,170				1,287				623				2,573
Other			3,975				2,801				2,199				2,267				2,448
			17,307				14,146				14,242				13,418				13,217
Direct Vessel Profit (1)		$	14,550			$	13,929			$	6,482			$	8,562			$	11,254
Other Costs and Expenses:
Lease expense		$	75			$	172			$	178			$	289			$	372
Depreciation and amortization			4,540				4,565				3,915				3,747				3,821

 

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SEACOR MARINE HOLDINGS INC.

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

(in thousands, except statistics)

		Three Months Ended
		Sep. 30, 2024				Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023
Middle East and Asia
Time Charter Statistics:
Average rates per day worked		$	17,825			$	17,083			$	16,934			$	17,590			$	16,313
Fleet utilization			71	%			82	%			71	%			69	%			67	%
Fleet available days			1,288				1,296				1,365				1,461				1,472
Out-of-service days for repairs, maintenance and drydockings			229				168				224				360				297
Operating Revenues:
Time charter		$	16,411			$	18,073			$	16,477			$	17,729			$	16,087
Other marine services			375				619				350				539				267
			16,786				18,692				16,827				18,268				16,354
Direct Costs and Expenses:
Operating:
Personnel			5,769				6,930				5,963				5,522				5,157
Repairs and maintenance			3,318				3,443				2,712				2,590				2,623
Drydocking			832				707				1,483				624				1,056
Insurance and loss reserves			927				798				618				1,022				711
Fuel, lubes and supplies			1,043				1,103				1,198				1,242				743
Other			1,131				989				1,000				1,133				943
			13,020				13,970				12,974				12,133				11,233
Direct Vessel Profit (1)		$	3,766			$	4,722			$	3,853			$	6,135			$	5,121
Other Costs and Expenses:
Lease expense		$	73			$	71			$	85			$	158			$	59
Depreciation and amortization			3,261				3,247				3,496				3,643				3,721
Latin America
Time Charter Statistics:
Average rates per day worked		$	21,984			$	22,437			$	28,308			$	20,745			$	20,656
Fleet utilization			63	%			71	%			58	%			84	%			87	%
Fleet available days (2)			828				808				938				809				766
Out-of-service days for repairs, maintenance and drydockings			94				41				1				—				67
Operating Revenues:
Time charter		$	11,500			$	12,832			$	15,274			$	14,049			$	13,817
Bareboat charter			372				364				364				368				368
Other marine services			620				1,727				1,598				143				176
			12,492				14,923				17,236				14,560				14,361
Direct Costs and Expenses:
Operating:
Personnel			3,791				3,383				4,745				3,645				2,985
Repairs and maintenance			1,517				1,761				2,438				1,388				1,021
Drydocking			1,940				1,707				1,223				336				(70	)
Insurance and loss reserves			259				539				390				209				217
Fuel, lubes and supplies			2,053				827				1,371				786				773
Other			465				419				671				522				367
			10,025				8,636				10,838				6,886				5,293
Direct Vessel Profit (1)		$	2,467			$	6,287			$	6,398			$	7,674			$	9,068
Other Costs and Expenses:
Lease expense		$	76			$	102			$	80			$	91			$	104
Depreciation and amortization			1,933				1,933				2,721				2,153				2,110

 

 

 

 

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SEACOR MARINE HOLDINGS INC.

UNAUDITED PERFORMANCE BY VESSEL CLASS

(in thousands, except statistics)

 

Three Months Ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

AHTS

Time Charter Statistics: