SEACOR Marine(SMHI) - 2025 Q2 - Quarterly Report

Part I. Financial Information Financial Statements (Unaudited) Net loss improved to $22.2 million in H1 2025, driven by a $25.0 million gain on asset dispositions, offsetting lower revenues and negative operating cash flow Condensed Consolidated Balance Sheets Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | $34,381 | $59,491 | ($25,110) | | Assets held for sale | $0 | $10,943 | ($10,943) | | Net property and equipment | $541,915 | $544,870 | ($2,955) | | Total Assets | $680,030 | $727,111 | ($47,081) | | Liabilities & Equity | | | | | Current portion of long-term debt | $30,000 | $27,500 | $2,500 | | Long-term debt | $310,980 | $317,339 | ($6,359) | | Total Liabilities | $412,234 | $428,789 | ($16,555) | | Total Equity | $267,796 | $298,322 | ($30,526) | Condensed Consolidated Statements of Income (Loss) Income Statement Summary (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $60,810 | $69,867 | $116,309 | $132,637 | | Gains on Asset Dispositions | $19,163 | $37 | $24,972 | $36 | | Operating Income (Loss) | $6,067 | ($3,930) | $814 | ($14,540) | | Net Loss | ($6,727) | ($12,483) | ($22,216) | ($35,552) | | Net Loss Per Share (Basic) | ($0.26) | ($0.45) | ($0.83) | ($1.29) | - The company shifted from an operating loss to operating income year-over-year for both the three and six-month periods, primarily due to significant gains on asset dispositions totaling $19.2 million in Q2 2025 and $25.0 million in H1 2025[9] Condensed Consolidated Statements of Cash Flows Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,543) | ($19,416) | | Net cash provided by (used in) investing activities | $9,056 | ($3,988) | | Net cash used in financing activities | ($20,098) | ($17,868) | | Net Change in Cash | ($24,585) | ($41,271) | - Investing activities provided $9.1 million in cash, driven by $40.1 million in proceeds from property dispositions, which offset $31.0 million in equipment purchases[14] - Financing activities used $20.1 million, including $12.5 million in debt payments and $13.8 million for stock and warrant repurchases[14] Notes to Condensed Consolidated Financial Statements - During the first six months of 2025, the company sold one fast support vessel (FSV), two platform supply vessels (PSV), one liftboat, and other equipment for net cash proceeds of $40.1 million, recognizing a gain of $25.0 million[46] - On April 4, 2025, the company repurchased 1,355,761 shares of its common stock and all outstanding warrants from Carlyle-affiliated funds for an aggregate price of approximately $12.9 million[61] - As of June 30, 2025, the company had unfunded capital commitments of $65.1 million, primarily for the construction of two PSVs ($59.3 million), partially funded by restricted cash and a dedicated credit facility tranche[62] Management's Discussion and Analysis of Financial Condition and Results of Operations Operating revenue decreased by 12.3% in H1 2025, but the company achieved operating income due to a $25.0 million gain on asset sales, while managing liquidity and capital commitments Recent Developments - Completed a Securities Repurchase from Carlyle affiliates for approximately $12.9 million, buying back approximately 1.36 million shares and approximately 1.28 million warrants, eliminating all outstanding warrants[86] - Sold two PSVs for $28.8 million (gain of $16.1 million) and one FSV for $4.6 million (gain of $3.0 million) in April 2025, with proceeds used for securities repurchase and new vessel construction[87][88] - Entered into a new $391.0 million credit facility in November 2024 to refinance existing debt and secure funding for two newbuild PSVs, expected to be delivered in Q4 2026 and Q1 2027[90][91][92] Consolidated Results of Operations Consolidated Operations Comparison (in thousands) | Metric | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $116,309 | $132,637 | -12.3% | | Operating Expenses | $91,421 | $97,619 | -6.3% | | Gains on Asset Dispositions | $24,972 | $36 | +69,267% | | Operating Income (Loss) | $814 | ($14,540) | Improved by $15.4M | | Net Loss | ($22,216) | ($35,552) | Improved by $13.3M | - Overall fleet utilization decreased slightly to 64% in H1 2025 from 65% in H1 2024, while average day rates increased to $19,291 from $19,094[95] Segment Performance Analysis - United States: Direct vessel loss narrowed to ($5.7 million) in H1 2025 from ($6.7 million) in H1 2024, despite lower utilization (36% vs 32%), due to cost control and fleet composition changes[106][109] - Africa and Europe: Direct vessel profit decreased to $15.6 million in H1 2025 from $20.4 million in H1 2024, primarily due to lower utilization and timing of repair expenditures, despite higher average day rates[111][114][115] - Middle East and Asia: Direct vessel profit fell to $3.8 million in H1 2025 from $8.6 million in H1 2024, driven by lower charter revenues from asset dispositions and lower day rates for the core fleet[117][120] - Latin America: Direct vessel profit decreased to $11.2 million in H1 2025 from $12.7 million in H1 2024, as vessel repositioning led to significantly lower revenues, partially offset by higher day rates and utilization for the remaining core fleet[122][125] Liquidity and Capital Resources - As of June 30, 2025, the company held $51.6 million in cash, cash equivalents, and restricted cash[139] - The company has unfunded capital commitments of $65.1 million as of June 30, 2025, mainly for two new PSVs, with funding sources including restricted cash ($16.5 million) and a dedicated credit facility tranche ($32.8 million remaining)[139][92] Contractual Long-Term Debt Maturities (in thousands) | Period | Amount | | :--- | :--- | | Remainder 2025 | $15,000 | | 2026 | $30,000 | | 2027 | $30,677 | | 2028 | $30,621 | | 2029 | $239,402 | | Total | $345,700 | Quantitative and Qualitative Disclosures About Market Risk The company states there has been no material change in its exposure to market risk during the six months ended June 30, 2025 - There has been no material change in the Company's exposure to market risk during the six months ended June 30, 2025[149] Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025 - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025[150] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[152] Part II. Other Information Legal Proceedings The company is appealing a Brazilian tax dispute for R$26.7 million (approx. $4.9 million USD), with other litigation not expected to be material - A Brazilian subsidiary is appealing a tax-deficiency notice from 2015 related to contributions from 2011-2012, with a potential levy of R$26.7 million (approximately $4.9 million USD)[63] Risk Factors The company reports no material changes to its risk factors from those disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes in the Company's risk factors during the current quarter from those disclosed in the 2024 Annual Report[155] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered equity sales in Q2 2025, but repurchased 2,011 shares from directors for tax withholding - The company did not have any unregistered sales of equity securities in Q2 2025[156] - During Q2 2025, the company repurchased 2,011 shares from directors to cover tax withholding obligations on vested restricted stock awards, at an aggregate price of $11,523[156] Other Items (3, 4, 5, 6) The company reported no defaults on senior securities, no mine safety disclosures, and no new or terminated Rule 10b5-1 trading arrangements - The company reported no defaults upon senior securities (Item 3), no mine safety disclosures (Item 4), and no new or terminated Rule 10b5-1 trading arrangements by executives (Item 5)[157][158][159]