Seacor Smit Announces First Quarter Results

Seacor Smit Inc., announced net earnings for the first quarter ended March 31, 2002 of $11,406,000, or $0.55 per fully diluted share, on operating revenues of $103,643,000. In the comparable quarter ended March 31, 2001, SEACOR earned $12,134,000 per fully diluted share, on operating revenues of $93,200,000. Net earnings in the immediately preceding quarter ended December 31, 2001 were $18,679,000 on operating revenues of $109,804,000. Operating revenues declined $6,161,000, or 5.6%, from the fourth quarter of 2001. Lower offshore marine revenues accounted for $4,723,000, or 77%, of this decrease. Fleet utilization declined in the U.S. but increased internationally. Worldwide rates per day worked were lower except for U.S. anchor handling towing supply and overseas supply and crew vessels. Marine related revenues also reflected lower gross income from vessel sales and time out of service while converting a supply boat to standby safety service. Offsetting these declines were additional revenues generated by new vessels added to the fleet and the return to service of certain vessels previously relocated between operating regions. The remaining $1,438,000, or 23%, decline in operating revenues resulted primarily from less retainer fees and spill response activity of the company’s environmental service business.

Operating income declined $1,961,000, or 8.8%, from the fourth quarter of 2001 to first quarter. Market conditions affecting operating revenues were partially offset by lower variable operating expenses, lower general and administrative costs, and the discontinuance of goodwill amortization upon the adoption on January 1, 2002 of a new accounting standard. Goodwill amortization was $900,000 in the prior quarter. Twenty-one offshore marine vessels were drydocked in the first quarter for an aggregate cost of $2,977,000 compared to the same number drydocked in the fourth quarter of 2001 for an aggregate cost of $1,447,000.