SEACOR Marine(SMHI) - 2021 Q1 - Quarterly Report

Part I. Financial Information Financial Statements (Unaudited) Q1 2021 net income of $6.0 million from a $20.0 million loss in Q1 2020, driven by asset sale gain and increased cash Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Current Assets | $149,857 | $178,696 | | Net Property and Equipment | $735,168 | $753,662 | | Total Assets | $973,816 | $1,017,663 | | Total Current Liabilities | $91,220 | $131,804 | | Total Liabilities | $564,657 | $615,827 | | Total Equity | $409,159 | $401,836 | | Total Liabilities and Equity | $973,816 | $1,017,663 | Condensed Consolidated Statements of Income (Loss) Summary (in thousands) | Account | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Operating Revenues | $36,512 | $35,667 | | Operating Loss | $(16,555) | $(23,721) | | Loss from Continuing Operations | $(16,914) | $(17,938) | | Income (Loss) on Discontinued Operations | $22,925 | $(2,054) | | Net Income (Loss) | $6,011 | $(19,992) | | Net Income (Loss) attributable to SEACOR Marine | $6,011 | $(15,945) | | EPS (Basic and Diluted) | $0.24 | $(0.66) | Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,375) | $(11,138) | | Net cash provided by investing activities | $39,440 | $3,552 | | Net cash used in financing activities | $(8,292) | $(5,069) | | Net Increase (Decrease) in Cash | $32,223 | $(14,474) | - On January 12, 2021, the company completed the sale of Windcat Workboats Holdings Ltd., recognizing a gain of approximately $22.8 million. Net proceeds from the sale were $38.7 million[47] Management's Discussion and Analysis of Financial Condition and Results of Operations Market challenges persist, but liquidity is strong; the SEACOR Power capsizing incident poses significant risks - On April 13, 2021, the liftboat SEACOR Power capsized off the coast of Louisiana, resulting in multiple fatalities, the constructive total loss of the vessel, and significant ongoing investigations by the NTSB and U.S. Coast Guard. The company anticipates substantial costs, potential liabilities, and reputational impact from this incident[95][96] - The company completed the sale of its Windcat Workboats crew transfer vessel (CTV) business on January 12, 2021, for a purchase price of £32.8 million, receiving net cash proceeds of approximately US$42.6 million[97] - The company received an aggregate of $32.3 million in cash tax refunds under the CARES Act, with $12.5 million received before March 31, 2021, and the remaining $19.8 million received in April 2021[99] Consolidated Results of Operations Summary (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Operating Revenues | $36,512 | $35,667 | | Operating Loss | $(16,555) | $(23,721) | | Net Income (Loss) attributable to SEACOR Marine | $6,011 | $(15,945) | | Direct Vessel Profit (DVP) | $10,205 | $14,932 | Operating Income (Loss) by Segment Segment DVP varied: U.S. Gulf of Mexico and Africa/Europe declined, Middle East/Asia fell, Latin America improved Direct Vessel Profit (DVP) by Geographic Segment (in thousands) | Region | Q1 2021 DVP | Q1 2020 DVP | Change | | :--- | :--- | :--- | :--- | | United States (Gulf of Mexico) | $(1,312) | $401 | $(1,713) | | Africa and Europe | $3,934 | $7,959 | $(4,025) | | Middle East and Asia | $3,353 | $5,029 | $(1,676) | | Latin America | $4,230 | $1,543 | $2,687 | - In the U.S. Gulf of Mexico, charter revenues fell by $2.9 million due to vessel repositioning and changes in fleet mix, leading to a DVP loss of $1.3 million[108][109] - In Latin America, charter revenues increased by $6.3 million, primarily due to net fleet additions, which drove a DVP increase of $2.7 million[117][118] Liquidity and Capital Resources Strong liquidity with $71.8 million cash, bolstered by asset sale and tax refund, sufficient to meet obligations - As of March 31, 2021, the company held $71.8 million in cash, cash equivalents, restricted cash, and construction reserve funds. An additional $19.8 million in tax refunds was received in April 2021[132] - Unfunded capital commitments totaled $10.1 million for one PSV and other equipment, with $9.2 million payable in the remainder of 2021. An additional $9.5 million order for one FSV has been indefinitely deferred[130] Contractual Long-Term Debt Maturities (in thousands) | Period | Amount | | :--- | :--- | | Remainder 2021 | $25,356 | | 2022 | $38,484 | | 2023 | $243,703 | | 2024 | $134,523 | | 2025 | $11,365 | | Subsequent to 2025 | $60,144 | | Total | $513,575 | Quantitative and Qualitative Disclosures About Market Risk No material change in market risk exposure during Q1 2021 compared to the 2020 Annual Report disclosures - There has been no material change in the Company's exposure to market risk during the three months ended March 31, 2021[144] Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2021, with no material changes - The Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2021[145] - No changes occurred in the Company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the controls[147] Part II. Other Information Legal Proceedings Refers to Note 9 for legal proceedings, including a Brazilian tax notice and the SEACOR Power capsizing incident - For information on legal proceedings, the report directs readers to "Note 9. Commitments and Contingencies" in the financial statements[149] Risk Factors Updated risk factors highlight the SEACOR Power capsizing, detailing investigations, litigation, and financial impact - The capsizing of the SEACOR Power on April 13, 2021, resulted in the death of several crew members and the total loss of the vessel. The company is responsible for costly and lengthy salvage operations[152] - The incident is under investigation by the NTSB and U.S. Coast Guard, which could take two years or longer and may result in fines, penalties, or operating restrictions[153] - Several civil lawsuits have been filed against the company by family members of deceased crew members, and more are possible. The outcome and potential losses are uncertain but could be significant[154] Unregistered Sales of Equity Securities and Use of Proceeds Company acquired 51,933 shares for $261,433 to cover tax obligations from equity incentive plan vesting Common Stock Purchases in Q1 2021 | Period | Total Shares Withheld | Average Price per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2021 | 14,199 | $3.34 | | Feb 1 - Feb 28, 2021 | — | — | | Mar 1 - Mar 31, 2021 | 37,734 | $5.67 | | Total Q1 2021 | 51,933 | N/A | Exhibits Lists exhibits filed with Form 10-Q, including credit facility amendments, officer certifications, and XBRL data files - Key exhibits filed include amendments to a credit facility (Exhibit 10.01), CEO and CFO certifications (Exhibits 31.1, 31.2, 32), and interactive data files (Exhibits 101, 104)[163]