SEACOR Marine Holdings Inc
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
SMHI$8.75+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0000950170-24-051298
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000950170-24-088727
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 104 current paragraphs.
40 unchanged; 48 reworded; 16 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Operating Revenues. Charter revenues were $2.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $2.4 million higher due to increased day rates for the Regional Core Fleet and $0.4 million lower due to net asset dispositions. Other marine services were $5.3 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Six Months and lower management fees in the Current Year Six Months.
Current report
Direct Operating Expenses. Direct operating expenses were $1.6 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $4.4 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repairs expenditures, $1.7 million lower due to net asset dispositions and $1.1 million lower due to the repositioning of vessels between geographic regions.
Current report
Direct Operating Expenses. Direct operating expenses were $2.7 million higher in the Current Year Quarter compared with the Prior Year Quarter primarily due to the repositioning of vessels between geographic regions.
Current report
Operating Revenues. Charter revenues were $4.2 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $3.7 million higher due to the repositioning of vessels between geographic regions and $0.5 million higher for the Regional Core Fleet due to increased day rates.
Current report
Direct Operating Expenses. Direct operating expenses were $3.4 million higher in the Current Year Six Months compared with the Prior Year Six Months primarily due to the repositioning of vessels between geographic regions.
Current report
Operating Revenues. Charter revenues were $2.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $4.8 million higher for the Regional Core Fleet as a result of increased liftboat and PSV day rates and utilization, $1.7 million lower due to net asset dispositions and $1.1 million lower due to the repositioning of vessels between geographic regions. Other marine services were $2.6 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Six Months.
Current report
Direct Operating Expenses. Direct operating expenses were $11.4 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $11.4 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures and insurance reimbursements related to expenses in prior periods, $0.7 million higher due to the repositioning of vessels between geographic regions and $0.7 million lower due to net asset dispositions.
Current report
Operating Revenues. Charter revenues were $0.6 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $1.4 million higher due to the repositioning of vessels between geographic regions and $0.8 million lower for the Regional Core Fleet due to reduced fleet utilization. Other marine services were $1.6 million higher primarily due to higher mobilization revenues.
Current report
Direct Operating Expenses. Direct operating expenses were $5.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $2.6 million higher due to the repositioning of vessels between geographic regions and $2.4 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures.
Current report
Gains (Losses) on Asset Dispositions and Impairments, Net. During the Current Year Quarter, the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain. During the Prior Year Quarter, the Company sold one specialty vessel, previously removed from service, and other equipment for net cash proceeds of $0.4 million, after transaction costs, and a gain of $0.3 million.
Current report
During the Current Six Months, the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain. During the Prior Year Six Months, the Company sold three liftboats, one specialty vessel, previously removed from service, and other equipment, previously classified as held for sale, as well as other equipment not previously classified as such, for net cash proceeds of $8.0 million, after transaction costs, and a gain of $2.9 million.
Current report
capital expenditures were $4.1 million; and
Current report
the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain.
Current report
the Company received $0.1 million proceeds from the exercise of stock options; and
Current report
the Company made payments on debt extinguishment of $26.8 million;
Current report
the Company received proceeds from the issuance of long-term debt of $27.2 million;
Removed paragraphs (6)
Previous report
Debt Refinancing and Maturity Extension
Previous report
In September 2023, SEACOR Marine, as parent guarantor, SEACOR Marine Foreign Holdings Inc., as borrower, and certain other wholly-owned subsidiaries of SEACOR Marine, as subsidiary guarantors, entered into a $122.0 million senior secured term loan (the “2023 SMFH Credit Facility”) with certain affiliates of EnTrust Global, as lenders, Kroll Agency Services, Limited, as facility agent, and Kroll Trustee Services Limited, as security trustee. The proceeds of the 2023 SMFH Credit Facility were used to, among other things, refinance approximately $104.8 million of indebtedness under five separate credit and ship financing facilities. As a result, the new maturity of the refinanced debt is September 2028.
Previous report
In addition, in June 2023 the Company refinanced shipyard financing provided by COSCO Shipping Heavy Industry (Zhoushan) Co. incurred in connection with the delivery of three platform supply vessels during 2019 and 2020 with the proceeds of a $28.0 million senior secured term loan facility entered into by SEACOR Alps LLC, SEACOR Andes LLC, and SEACOR Atlas LLC, each a wholly-owned subsidiary of SEACOR Marine, as borrowers. As a result, the new maturity of the refinanced debt is June 2028.
Previous report
Direct Operating Expenses. Direct operating expenses were $0.7 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $0.8 million higher due to the repositioning of vessels between geographic regions and $0.1 million lower for the Regional Core Fleet.
Previous report
capital expenditures were $3.4 million;
Previous report
the Company sold other equipment for net cash proceeds of $7.6 million, after transaction costs, and a gain of $2.6 million; and
Reworded paragraphs (48)
Previous wording
Offshore oil and natural gas market conditions are highly volatile. Oil prices experienced unprecedented volatility during 2020 due to the COVID-19 pandemic and the related effects on the global economy, with the price per barrel going negative for a short period of time. Oil prices steadily increased since the lows hit at the beginning of the COVID-19 pandemic and hit a multi-year high of $122 per barrel during 2022 primarily as a result of the conflict between Russia and Ukraine as well as the related economic sanctions and economic uncertainty. During the first quarter of 2024, WTI oil prices reached a high of $83 per barrel and a low of $70 per barrel, ending the quarter at $83 per barrel.
Current wording
Offshore oil and natural gas market conditions are highly volatile. Oil prices experienced unprecedented volatility during 2020 due to the COVID-19 pandemic and the related effects on the global economy, with the price per barrel going negative for a short period of time. Oil prices steadily increased since the lows hit at the beginning of the COVID-19 pandemic and hit a multi-year high of $122 per barrel during 2022 primarily as a result of the conflict between Russia and Ukraine as well as the related economic sanctions and economic uncertainty but subsequently decreased to pre-conflict levels. During the six months ended June 30, 2024, WTI oil prices reached a high of $87 per barrel and a low of $70 per barrel, ending the period at $82 per barrel.
Previous wording
Certain macro drivers somewhat independent of oil and natural gas prices may support the Company’s business, including: (i) underspending by oil and natural gas producers over the last five to ten years leading to pent up demand for maintenance and growth capital expenditures; (ii) improved extraction technologies; and (iii) the need for offshore wind farm support as the industry grows. While the Company expects that alternative forms of energy will continue to develop and add to the world’s energy mix, especially as governments, supranational groups, institutional investors, and various other parties focus on climate change causes and concerns, the Company believes that for the foreseeable future demand for gasoline and oil will be sustained, as will demand for electricity from natural gas. Some alternative forms of energy such as offshore wind farms support some of the Company’s operations and the Company expects such support to increase as development of renewable energy expands.
Current wording
Certain macro drivers somewhat independent of oil and natural gas prices may support the Company’s business, including: (i) underspending by oil and natural gas producers over the last five to ten years leading to pent up demand for maintenance and growth capital expenditures; (ii) improved extraction technologies; and (iii) the need for offshore wind farm support as the industry grows. While the Company expects that alternative forms of energy will continue to develop and add to the world’s energy mix, especially as governments, supranational groups, institutional investors, and various other parties focus on climate change causes and concerns, the Company believes that for the foreseeable future demand for gasoline and oil will be sustained, as will demand for electricity from natural gas. Some alternative forms of energy such as offshore wind farms support some of the Company’s operations and the Company expects such support to increase as development of these forms of renewable energy expands.
Previous wording
The Company adheres to a strategy of cold-stacking vessels (removing from active service) during periods of weak utilization in order to reduce the daily running costs of operating the fleet, primarily personnel, repairs and maintenance costs, as well as to defer some drydocking costs into future periods. The Company considers various factors in determining which vessels to cold-stack, including upcoming dates for regulatory vessel inspections and related docking requirements. The Company may maintain class certification on certain cold-stacked vessels, thereby incurring some drydocking costs while cold-stacked. Cold-stacked vessels are returned to active service when market conditions improve, or management anticipates improvement, typically leading to increased costs for drydocking, personnel, repair and maintenance in the periods immediately preceding the vessels’ return to active service. Depending on market conditions, vessels with similar characteristics and capabilities may be rotated between active service and cold-stack. On an ongoing basis, the Company reviews its cold-stacked vessels to determine if any should be designated as retired and removed from service based on the vessel’s physical condition, the expected costs to reactivate and restore class certification, if any, and its viability to operate within current and projected market conditions. As of March 31, 2024, three of the Company’s 56 owned and leased-in vessels were cold-stacked worldwide, including one vessel classified as held for sale.
Current wording
The Company adheres to a strategy of cold-stacking vessels (removing from active service) during periods of weak utilization in order to reduce the daily running costs of operating the fleet, primarily personnel, repairs and maintenance costs, as well as to defer some drydocking costs into future periods. The Company considers various factors in determining which vessels to cold-stack, including upcoming dates for regulatory vessel inspections and related docking requirements. The Company may maintain class certification on certain cold-stacked vessels, thereby incurring some drydocking costs while cold-stacked. Cold-stacked vessels are returned to active service when market conditions improve, or management anticipates improvement, typically leading to increased costs for drydocking, personnel, repair and maintenance in the periods immediately preceding the vessels’ return to active service. Depending on market conditions, vessels with similar characteristics and capabilities may be rotated between active service and cold-stack. On an ongoing basis, the Company reviews its cold-stacked vessels to determine if any should be designated as retired and removed from service based on the vessel’s physical condition, the expected costs to reactivate and restore class certification, if any, and its viability to operate within current and projected market conditions. As of June 30, 2024, two of the Company’s 56 owned and leased-in vessels were cold-stacked worldwide, including one vessel classified as held for sale.
Previous wording
On November 1, 2023, SEACOR Marine entered into an at-the-market sales agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Sales Agent”), relating to the potential issuance and sale from time to time by SEACOR Marine of shares of SEACOR Marine’s common stock, par value $0.01 per share (the “Common Stock”) for an aggregate gross sales price of up to $25.0 million. During the fourth quarter of 2023, SEACOR Marine sold 7,674 shares of Common Stock at an average price of $13.1891 per share for total gross proceeds to the Company of $101,213 leaving us with approximately $24.9 million of additional capacity under the ATM Program.
Current wording
On November 1, 2023, SEACOR Marine entered into an at-the-market offering program (“ATM Program”) with B. Riley Securities, Inc., pursuant to which SEACOR Marine may sell up to $25.0 million of Common Stock. As of June 30, 2024, the remaining capacity under the ATM Program was approximately $24.9 million.
Previous wording
The sections below provide an analysis of the Company’s results of operations for the three months (“Current Year Quarter”) ended March 31, 2024 compared with the three months (“Prior Year Quarter”) ended March 31, 2023. Except as otherwise noted, there have been no material changes since the end of the Company’s fiscal year ended December 31, 2023, in the Company’s results of operations. For the periods indicated, the Company’s consolidated results of operations were as follows (in thousands, except statistics):
Current wording
The sections below provide an analysis of the Company’s results of operations for the three and six months (“Current Year Quarter” and “Current Year Six Months”) ended June 30, 2024 compared with the three and six months (“Prior Year Quarter” and “Prior Year Six Months”) ended June 30, 2023. Except as otherwise noted, there have been no material changes since the end of the Company’s fiscal year ended December 31, 2023, in the Company’s results of operations. For the periods indicated, the Company’s consolidated results of operations were as follows (in thousands, except statistics):
Previous wording
Direct Vessel Profit. Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “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 leased-in vessels). See “Note 11. Segment Information” to the Unaudited Consolidated Financial Statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Direct Vessel Profit. Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “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 leased-in vessels). See “Note 11. Segment Information” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Total Assets by region does not include corporate assets of $57.5 million as of March 31, 2024.
Current wording
Total Assets by region does not include corporate assets of $40.8 million as of June 30, 2024.
Previous wording
Total Assets by region does not include corporate assets of $54.4 million as of March 31, 2023.
Current wording
Total Assets by region does not include corporate assets of $46.8 million as of June 30, 2023.
Previous wording
United States, primarily Gulf of Mexico. For the three months ended March 31, 2024 and 2023 the Company’s time charter statistics and direct vessel (loss) profit in the U.S. were as follows (in thousands, except statistics):
Current wording
United States, primarily Gulf of Mexico. For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel loss in the U.S. were as follows (in thousands, except statistics):
Previous wording
Operating Revenues. Charter revenues were $0.4 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $2.8 million higher due to increased day rates of the vessels included in the results of this region in both comparative periods (as applicable to each region, the “Regional Core Fleet”) and $2.4 million lower due to the repositioning of vessels between geographic regions. Other marine services were $2.8 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Quarter. As of March 31, 2024 and March 31, 2023, the Company had two of ten owned vessels (one liftboat and one FSV) cold-stacked in this region.
Current wording
Operating Revenues. Charter revenues were $1.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.8 million higher due to increased day rates of the vessels included in the results of this region in both comparative periods (as applicable to each region, the “Regional Core Fleet”) and $0.2 million higher due to the repositioning of vessels between geographic regions. Charter revenues were $0.4 million lower due to net asset dispositions. Other marine services were $2.5 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Quarter and lower management fees in the Current Year Quarter. As of June 30, 2024, the Company had one of ten owned vessels (one liftboat) cold-stacked in this region compared with one of 13 owned and leased-in vessels (one liftboat) as of June 30, 2023.
Previous wording
Direct Operating Expenses. Direct operating expenses were $0.2 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $2.6 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repairs expenditures, $1.6 million lower due to the repositioning of vessels between geographic regions and $0.8 million lower due to net asset dispositions.
Current wording
Direct Operating Expenses. Direct operating expenses were $1.4 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $2.5 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repairs expenditures, $0.1 million higher due to the repositioning of vessels between geographic regions and $1.2 million lower due to net asset dispositions.
Previous wording
Africa and Europe. For the three months ended March 31, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Africa and Europe were as follows (in thousands, except statistics):
Current wording
Africa and Europe. For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Africa and Europe were as follows (in thousands, except statistics):
Previous wording
Operating Revenues. Charter revenues were $1.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.4 million higher for the Regional Core Fleet due to increased day rates and $0.2 million higher due to the repositioning of vessels between geographic regions. As of March 31, 2024, the Company had one of 20 owned and leased-in vessels (one AHTS) cold-stacked in this region that is classified as held for sale.
Current wording
Operating Revenues. Charter revenues were $2.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $3.5 million higher for the Regional Core Fleet due to the repositioning of vessels between geographic regions and $0.9 million lower for the Regional Core Fleet primarily due to lower utilization. As of June 30, 2024, the Company had one of 22 owned and leased-in vessels (one AHTS) cold-stacked in this region that is classified as held for sale.
Previous wording
Middle East and Asia. For the three months ended March 31, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in the Middle East and Asia were as follows (in thousands, except statistics):
Current wording
Middle East and Asia. For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in the Middle East and Asia were as follows (in thousands, except statistics):
Previous wording
Operating Revenues. Charter revenues were $0.4 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.3 million higher for the Regional Core Fleet as a result of increased liftboat and PSV day rates and utilization, and $0.9 million lower due to net asset dispositions. Other marine services were $0.3 million higher due to increased catering revenues. As of March 31, 2024, the Company had no vessels cold-stacked in this region.
Current wording
Operating Revenues. Charter revenues were $1.5 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $3.2 million higher for the Regional Core Fleet as a result of increased liftboat and PSV day rates and utilization, $0.9 million lower due to net asset dispositions and $0.8 million lower due to the repositioning of vessels between geographic regions. Other marine services were $2.9 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Quarter. As of June 30, 2024, the Company had no vessels cold-stacked in this region.
Previous wording
Direct Operating Expenses. Direct operating expenses were $4.7 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $5.0 million higher for the Regional Core Fleet, primarily due to the timing of drydocking and repair expenditures and insurance reimbursements related to expenses in prior periods and $0.3 million lower due to net asset dispositions.
Current wording
Direct Operating Expenses. Direct operating expenses were $6.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $7.0 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures and insurance reimbursements related to expenses in prior periods, $0.3 million lower due to net asset dispositions and $0.1 million lower due to the repositioning of vessels between geographic regions.
Previous wording
Latin America (Brazil, Mexico, Central and South America). For the three months ended March 31, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Latin America were as follows (in thousands, except statistics):
Current wording
Latin America (Brazil, Mexico, Central and South America). For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Latin America were as follows (in thousands, except statistics):
Previous wording
Operating Revenues. Charter revenues were $1.5 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $6.4 million higher due to the repositioning of vessels between geographic regions and $4.9 million lower for the Regional Core Fleet due to reduced fleet utilization. As of March 31, 2024, the Company had no vessels cold-stacked in this region.
Current wording
Operating Revenues. Charter revenues were $0.9 million lower in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.1 million lower for the Regional Core Fleet due to reduced fleet utilization and $0.2 million higher due to the repositioning of vessels between geographic regions. Other marine services were $1.3 million higher primarily due to higher mobilization revenues. As of June 30, 2024, the Company had no vessels cold-stacked in this region.
Previous wording
Direct Operating Expenses. Direct operating expenses were $3.9 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $3.2 million higher due to the repositioning of vessels between geographic regions and $0.7 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures.
Current wording
Direct Operating Expenses. Direct operating expenses were $1.1 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $0.6 million higher due to the repositioning of vessels between geographic regions and $0.5 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures.
Previous wording
Lease Expense. Leased-in equipment expense for the Current Year Quarter was $0.2 million lower compared to the Prior Year Quarter due to having one leased-in vessel in 2024 compared to two in 2023.
Current wording
Lease Expense. Leased-in equipment expense for the Current Year Quarter and Current Year Six Months was $0.2 million lower and $0.5 million lower compared to the Prior Year Quarter and Prior Year Six Months due to having one leased-in vessel in 2024 compared to two in 2023.
Previous wording
Administrative and general. Administrative and general expenses for the Current Year Quarter were $0.3 million higher compared to the Prior Year Quarter primarily due to increases in wages and benefits expenses.
Current wording
Administrative and general. Administrative and general expenses for the Current Year Quarter and Current Year Six Months were $2.8 million lower and $2.5 million lower compared to the Prior Year Quarter and Prior Year Six Months primarily due to decreases in allowance for credit losses.
Previous wording
Depreciation and amortization. Depreciation and amortization expense for the Current Year Quarter were $0.9 million lower compared to the Prior Year Quarter primarily due to net fleet changes.
Current wording
Depreciation and amortization. Depreciation and amortization expense for the Current Year Quarter and Current Year Six Months were $0.6 million lower and $1.5 million lower compared to the Prior Year Quarter and Prior Year Six Months primarily due to net fleet changes.
Previous wording
For the three months ended March 31, 2024 and 2023, the Company’s other income (expense) was as follows (in thousands):
Current wording
For the three and six months ended June 30, 2024 and 2023, the Company’s other income (expense) was as follows (in thousands):
Previous wording
Interest income. Interest income for the Current Year Quarter compared with the Prior Year Quarter was higher due to higher yields on our cash balances.
Current wording
Interest income. Interest income for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months was nearly flat.
Previous wording
Interest expense. Interest expense was higher in the Current Year Quarter compared with the Prior Year Quarter primarily due to a higher interest rate on the refinancing of the 2018 SMFH Credit Facility with the 2023 SMFH Credit Facility (which bears interest at a fixed rate of 11.75% per annum).
Current wording
Interest expense. Interest expense was higher in the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months primarily due to a higher interest rate on the 2023 SMFH Credit Facility (which bears interest at a fixed rate of 11.75% per annum),which was entered into subsequent to June 30, 2023, as compared with the 2018 SMFH Credit Facility.
Previous wording
Derivative losses, net. Net derivative losses for the Current Year Quarter compared with the Prior Year Quarter increased due to the Company entering into an open forward currency exchange contract in the fourth quarter of 2023.
Current wording
Derivative gains (losses), net. Net derivative gains (losses) for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months increased due to the Company entering into an open forward currency exchange contract in the fourth quarter of 2023.
Previous wording
Foreign currency losses, net. Net foreign currency losses for the Current Year Quarter compared with the Prior Year Quarter decreased primarily due to the strengthening of the pound sterling in relation to the U.S. dollar.
Current wording
Foreign currency losses, net. Net foreign currency losses for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months decreased primarily due to the strengthening of the pound sterling in relation to the U.S. dollar.
Previous wording
During the three months ended March 31, 2024, the Company’s effective income tax rate of 4.4% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit for U.S. income tax purposes.
Current wording
During the six months ended June 30, 2024, the Company’s effective income tax rate of 0.7% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit for U.S. income tax purposes.
Previous wording
Equity in earnings of 50% or less owned companies for the Current Year Quarter compared with the Prior Year Quarter were $1.6 million lower due to the following changes in equity earnings (losses) gains (in thousands):
Current wording
Equity in earnings of 50% or less owned companies for the Current Year Quarter compared with the Prior Year Quarter were $0.6 million lower and earnings for the Current Year Six Months compared with the Prior Year Six Months were $1.0 million lower due to the following changes in equity earnings (losses) (in thousands):
Previous wording
The Company’s ongoing liquidity requirements arise primarily from working capital needs, capital commitments and its obligations to service outstanding debt and comply with covenants under its debt facilities. The Company may use its liquidity to fund capital expenditures, make acquisitions or to make other investments. Sources of liquidity are cash balances, cash flows from operations and sales under the Company’s ATM Program, which has approximately $24.9 million of authority remaining of sales. From time to time, the Company may secure additional liquidity through asset sales or the issuance of debt, shares of Common Stock or common stock of its subsidiaries, preferred stock or a combination thereof.
Current wording
The Company’s ongoing liquidity requirements arise primarily from working capital needs, capital commitments and its obligations to service outstanding debt and comply with covenants under its debt facilities. The Company may use its liquidity to fund capital expenditures, make acquisitions or to make other investments. Sources of liquidity are cash balances, cash flows from operations and sales under the Company’s ATM Program, which has approximately $24.9 million of remaining sales capacity as of June 30, 2024. From time to time, the Company may secure additional liquidity through asset sales or the issuance of debt, shares of Common Stock or common stock of its subsidiaries, preferred stock or a combination thereof.
Previous wording
As of March 31, 2024, the Company held balances of cash, cash equivalents and restricted cash totaling $62.2 million. As of March 31, 2023, the Company held balances of cash, cash equivalents and restricted cash totaling $43.7 million.
Current wording
As of June 30, 2024 and June 30, 2023, the Company held balances of cash, cash equivalents and restricted cash totaling $42.9 million and $43.5 million, respectively.
Previous wording
As of March 31, 2024, the Company had outstanding debt of $310.6 million, net of debt discount and issue costs. The Company’s contractual long-term debt maturities as of March 31, 2024, are as follows (in thousands):
Current wording
As of June 30, 2024, the Company had outstanding debt of $306.3 million, net of debt discount and issue costs. The Company’s contractual long-term debt maturities as of June 30, 2024, are as follows (in thousands):
Previous wording
As of March 31, 2024, the Company had unfunded capital commitments of $12.5 million for miscellaneous vessel equipment, including $10.5 million in respect of hybrid battery power systems. Of the unfunded capital commitments, $7.3 million is payable during 2024 and $5.2 million is payable during 2025. In addition to the unfunded capital commitments above, the Company has indefinitely deferred an additional $9.2 million of capital commitments with respect to one FSV.
Current wording
As of June 30, 2024, the Company had unfunded capital commitments of $12.2 million for miscellaneous vessel equipment, including $10.1 million in respect of hybrid battery power systems. Of the unfunded capital commitments, $6.9 million is payable during 2024 and $5.3 million is payable during 2025. In addition to the unfunded capital commitments above, the Company has indefinitely deferred an additional $9.2 million of capital commitments with respect to one FSV.
Previous wording
The following is a summary of the Company’s cash flows for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following is a summary of the Company’s cash flows for the six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
Cash flows used in operating activities increased by $6.6 million in the Current Year Quarter compared with the Prior Year Quarter primarily due to a decrease in utilization offset by changes in working capital. The components of cash flows provided by and/or used in operating activities during the Current Year Quarter and Prior Year Quarter were as follows (in thousands):
Current wording
Cash flows used in operating activities increased by $22.7 million in the Current Year Six Months compared with the Prior Year Six Months primarily due to a decrease in utilization offset by changes in working capital. The components of cash flows provided by and/or used in operating activities during the Current Year Six Months and Prior Year Six Months were as follows (in thousands):
Previous wording
During the Current Year Quarter and the Prior Year Quarter, the Company paid no capitalized interest.
Current wording
During the Current Year Six Months and the Prior Year Six Months, the Company paid no capitalized interest.
Previous wording
During the Current Year Quarter, net cash used in investing activities was $3.4 million, primarily as a result of the following:
Current wording
During the Current Year Six Months, net cash used in investing activities was $4.0 million, primarily as a result of the following:
Previous wording
During the Prior Year Quarter, net cash provided by investing activities was $12.1 million, primarily as a result of the following:
Current wording
During the Prior Year Six Months, net cash provided by investing activities was $17.5 million, primarily as a result of the following:
Previous wording
Gains (Losses) on Asset Dispositions and Impairments, Net. There were no vessel sales during the Current Year Quarter. During the Prior Year Quarter, the Company sold three liftboats and other equipment, previously classified as held for sale, as well as other equipment not previously classified as such, for net cash proceeds of $7.6 million, after transaction costs, and a gain of $2.6 million.
Current wording
the Company sold three liftboats, one specialty vessel, previously removed from service, and other equipment, previously classified as held for sale, as well as other equipment not previously classified as such for net cash proceeds of $8.0 million, after transaction costs, and a gain of $2.9 million; and
Previous wording
the Company received $5.0 million of principal payments under the MexMar Third A&R Facility Agreement.
Current wording
the Company received $10.0 million of principal payments under the MexMar Third A&R Facility Agreement.
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