SEACOR Marine (SMHI) Tops Q4 EPS by 51c, Revenues Beat

SEACOR Marine (NYSE: SMHI) reported Q4 EPS of ($0.35), $0.51 better than the analyst estimate of ($0.86). Revenue for the quarter came in at $70.93 million versus the consensus estimate of $68 million.

• Total operating revenues increased 43.8% as compared with the fourth quarter of 2017, in what is historically a seasonally slow quarter.
• Cash flows from operating activities increased to $11.9 million from $5.6 million in the prior quarter.
• Operating loss decreased by $24.6 million to $11.2 million from $35.8 million in the fourth quarter of 2017, representing a 68.8% year over year improvement.
• Consolidated direct vessel profit ("DVP")(1) increased 32.8% to $28.8 million from $21.7 million in the third quarter of 2018, an increase of 146.0% from $11.7 million in the fourth quarter of 2017, and an increase of 189.4% to $78.5 million in the year ended December 31, 2018 from $27.1 million in the year ended December 31, 2017.
• Expanded presence in Brazil through the formation of a new joint venture to acquire UP Offshore.

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

"Our business improved steadily throughout the year and we closed 2018 with our sixth consecutive quarterly increase in direct vessel profit, and nearly doubled our cash flow from operating activities from the prior quarter. This improvement is especially notable as the last quarter of the year is usually a seasonally slow period of activity for our liftboats in the Gulf of Mexico and crew transfer vessels ("CTVs") in the North Sea. To the extent there was some seasonal reduction it was offset by improved results from nearly all other classes of vessels and a one-time recognition of previously deferred revenues in the U.S. Gulf of Mexico.

As part of our continued commitment to actively managing our fleet, we sold an additional six fast support vessels ("FSVs"), two liftboats and one standby safety vessel during the fourth quarter, taking us to a total of 16 vessel dispositions for 2018. These sales were offset during 2018 by the addition of two CTVs and six liftboats as well as the net addition of 16 vessels to the managed fleet through non-consolidated joint ventures. As of December 31, 2018, the net book value of our property and equipment was $681.5 million, an increase of $61.8 million compared to the end of 2017. Collectively, the sale transactions in the fourth quarter generated a net gain of $3.8 million before asset impairments.

The improvement in 2018 and positive beginning to 2019 is encouraging. We hope for continued upticks in demand and believe our asset base and geographical reach place us in a unique position."

For earnings history and earnings-related data on SEACOR Marine (SMHI) click here.

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