Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net
earnings attributable to Kirby for the third quarter ended
September 30, 2023 of $63.0 million or $1.05 per share,
compared with earnings of $39.1 million, or $0.65 per share for the
2022 third quarter. Consolidated revenues for the 2023 third
quarter were $764.8 million compared with $745.8 million reported
for the 2022 third quarter.
David Grzebinski, Kirby’s President and Chief
Executive Officer, commented, “Both of our segments continued to
perform well during the quarter despite facing some temporary
challenges. In marine transportation, pricing on spot and term
contracts continued to benefit from strong demand and limited
availability of barges. Distribution and services delivered
improved margins even as we continued to work through supply chain
delays during the quarter. Overall, our earnings increased
sequentially and year-over-year. We continued to repurchase stock
during the quarter.
“In inland marine transportation, our third
quarter results reflected continued improvement in pricing
partially offset by temporary headwinds from the Illinois River
closure and several refinery outages in the quarter. From a demand
standpoint, customer activity remained strong in the quarter with
barge utilization rates running in the high 80% range. Spot market
prices continued to progress higher and were up in the mid-single
digits sequentially and in the mid-teens range year-over-year. Term
contract prices also renewed at higher rates with high single digit
increases versus a year ago. Margins were in the high teens
range.
“In coastal, improvements in market fundamentals
accelerated with solid customer demand and limited availability of
large capacity vessels resulting in spot price increases in the
mid-single digits sequentially and in the low 30% range
year-over-year. During the quarter, our barge utilization levels
continued to run in the mid-90% range. As mentioned before, our
results this year are being impacted by planned shipyard
maintenance on several large vessels which led to an overall
decrease in third quarter coastal revenues year-over-year and
operating margins just below break-even.
“In distribution and services, demand remained
strong across our markets with steady levels of service and repair
work combined with high levels of backlog. In our commercial and
industrial market, overall demand remained solid across our
different businesses, with growth coming from the marine repair,
power generation, and on-highway sectors. In our oil and gas
market, while our revenue was down sequentially due to supply chain
delays, our operating income was up sequentially with a low-teens
margin driven by favorable product mix and operating efficiencies.
Overall, revenues were up 7% year-over-year and operating margins
improved to just under 10%.”
Segment Results – Marine
Transportation Marine transportation revenues for the 2023
third quarter were $429.9 million compared with $433.0 million for
the 2022 third quarter. Operating income for the 2023 third quarter
was $63.5 million compared with $41.7 million for the 2022 third
quarter. Segment operating margin for the 2023 third quarter was
14.8% compared with 9.6% for the 2022 third quarter.
In the inland market, average 2023 third quarter
barge utilization was in the high 80% range, lower when compared to
the 2022 third quarter due to the Illinois River lock closures and
several refinery outages. Operating conditions were unfavorable
with lock, weather and navigational delays contributing to a 24%
increase in delay days year-over-year. During the quarter, average
spot market rates increased in the mid-single digits sequentially
and in the mid-teens range compared to the 2022 third quarter. Term
contracts that renewed in the third quarter increased in the
high-single digits on average compared to a year ago. Revenues
increased 2% compared to the 2022 third quarter despite challenging
operating conditions as increased pricing was partially offset by
lower utilization from the Illinois River lock closures. The inland
market represented 82% of segment revenues in the third quarter of
2023. Inland’s operating margin was in the high teens for the
quarter.
In coastal, market conditions were strong
throughout the quarter, with barge utilization in the mid-90%
range. During the quarter, average spot market rates increased in
the mid-single digits sequentially and in the low 30% range
compared to the 2022 third quarter. Term contracts that renewed in
the third quarter increased in the low double digits compared to a
year ago. Despite these improvements, revenues in the coastal
market decreased when compared to the 2022 third quarter primarily
due to downtime associated with planned shipyard maintenance days.
Coastal represented 18% of marine transportation segment revenues
during the third quarter. Coastal operating margin was around
break-even as improved pricing was partially offset by lost revenue
and costs incurred as a result of planned shipyards.
Segment Results –
Distribution and Services Distribution and
services revenues for the 2023 third quarter were $334.9 million
compared with $312.8 million for the 2022 third quarter. Operating
income for the 2023 third quarter was $33.2 million compared with
$22.3 million for the 2022 third quarter. Operating margin was 9.9%
for the 2023 third quarter compared with 7.1% for the 2022 third
quarter.
In the commercial and industrial market,
revenues and operating income increased compared to the 2022 third
quarter, primarily due to strong economic activity across the U.S.
which resulted in higher business levels in marine repair, power
generation, and on-highway. Overall, commercial and industrial
revenues represented approximately 63% of segment revenues.
Commercial and industrial operating margins were in the high single
digits.
In the oil and gas market, revenues declined and
operating income increased compared to the 2022 third quarter as
supply chain delays and fewer sales of new transmissions were
offset by favorable pricing, product mix, and operating
efficiencies. Although our manufacturing revenues were heavily
impacted by continued supply chain delays, the business continued
to receive new orders for our environmentally-friendly pressure
pumping equipment and power generation equipment for electric
fracturing and backlog remained at high levels. Overall, oil and
gas represented approximately 37% of segment revenues. Oil and gas
operating margins were in the low double digits.
Cash Generation For the 2023
third quarter, EBITDA was $148.5 million compared with $113.0
million for the 2022 third quarter. During the quarter, net cash
provided by operating activities was $96.3 million, and capital
expenditures were $103.8 million. During the quarter, the Company
had net proceeds from asset sales totaling $1.3 million. Kirby also
used $23.3 million to repurchase stock at an average price of
$80.31. As of September 30, 2023, the Company had $42.1 million of
cash and cash equivalents on the balance sheet and $450.7 million
of liquidity available. Total debt was $1,067.9 million and the
debt-to-capitalization ratio was 25.3%.
2023 Fourth Quarter Outlook
Commenting on the 2023 fourth quarter outlook, Mr. Grzebinski said,
“We had a good quarter with both businesses performing well despite
some temporary headwinds. Refinery activity remains at high levels,
our barge utilization is strong in both inland and coastal, and
rates are steadily increasing. While we expect some near-term
issues in the fourth quarter related to low water conditions on the
Mississippi River, increasing delay days due to normal seasonal
weather conditions, and high levels of shipyard activity in
coastal, our outlook in the marine market remains strong. In
distribution and services, despite ongoing supply chain constraints
and delays, demand for our products and services is good, and we
continue to receive new orders in manufacturing. Overall, we expect
our businesses to deliver improved financial results in 2024. While
all of this is encouraging, we are mindful of challenges related to
a slowing global economy and additional economic weakness due to
higher interest rates. Even with these uncertainties, we remain
very positive and expect to drive strong cash flow from operations
going forward.”
In inland marine, favorable conditions are
expected to continue, driven by the combination of high refinery
and petrochemical plant utilization and minimal new barge
construction across the industry. Kirby expects these strengths to
be partially offset by increasing delay days due to normal seasonal
weather conditions, lock delays, and low water conditions on the
Mississippi River. The Company still expects further improvements
in spot market prices, which currently represents approximately 45%
of inland revenues. Term contracts are also expected to continue to
reset higher. Overall, fourth quarter inland revenues are expected
to be roughly flat sequentially with modest improvement in margins,
exiting the year close to if not at 20%.
In coastal marine, revenues and operating
margins are being impacted this year by an approximate doubling of
planned shipyard maintenance days with ballast water treatment
installations on certain vessels. Kirby expects steady customer
demand through the balance of the year with barge utilization in
the low to mid-90% range. Rates are expected to continue improving
as the availability of equipment is tight across the industry. For
the fourth quarter, coastal revenues are expected to be up in the
low to mid-single digits compared to 2023 third quarter as we
continue to progress through major shipyards with the timing of
some possibly shifting to early 2024. Coastal operating margins are
expected to be near break-even to low single digits on a full year
basis.
In distribution and services, steady demand in
commercial and industrial and favorable oilfield fundamentals are
expected to continue throughout the remainder of 2023 and into
2024. In commercial and industrial, steady markets are expected to
remain in the fourth quarter with incremental activity in power
generation, marine repair, and on-highway. This activity should be
partially offset by lower rental equipment activity as the
hurricane season winds down. In the oil and gas market, despite the
near-term volatility in commodity prices and rig counts, we expect
continued demand for manufacturing as well as for OEM products,
parts, and services. Within manufacturing, the Company expects
demand for environmentally friendly pressure pumping and e-frac
power generation equipment to remain strong, with new orders and
increased deliveries of new equipment for the remainder of 2023 and
into 2024. Supply chain issues and long lead times are expected to
persist in the near-term, contributing to some volatility as
deliveries of new products could shift into 2024. Overall, the
Company expects fourth quarter segment revenues to be up in the low
to mid-single digits sequentially with operating margins impacted
by mix and lower in the mid to high-single digit range.
Kirby sees net cash provided from operating
activities of $475 million to $525 million in 2023. 2023 capital
spending is expected to range between $330 to $380 million.
Approximately $240 million is associated with marine maintenance
capital and improvements to existing inland and coastal marine
equipment, including ballast water treatment systems on some
coastal vessels, and facility improvements. Up to approximately
$140 million is associated with growth capital spending in both our
businesses.
Conference Call A conference
call is scheduled for 7:30 a.m. Central Daylight Time today,
Thursday, October 26, 2023, to discuss the 2023 third quarter
performance as well as the outlook for 2023. To listen to the
webcast, please visit the Investor Relations section of Kirby’s
website at www.kirbycorp.com. For listeners who wish to
participate in the question and answer session via telephone,
please pre-register at Kirby Earnings Call
Registration. All registrants will receive dial-in
information and a PIN allowing them to access the live call. A
slide presentation for this conference call will be posted on
Kirby’s website approximately 15 minutes before the start of the
webcast. A replay of the webcast will be available for a period of
one year by visiting the News & Events page in the Investor
Relations section of Kirby’s website.
GAAP to Non-GAAP Financial
Measures The financial and other information to be
discussed in the conference call is available in this press release
and in a Form 8-K filed with the Securities and Exchange
Commission. This press release and the Form 8-K includes a non-GAAP
financial measure, EBITDA, which Kirby defines as net earnings
attributable to Kirby before interest expense, taxes on income, and
depreciation and amortization. A reconciliation of EBITDA with GAAP
net earnings attributable to Kirby is included in this press
release. This press release also includes non-GAAP financial
measures which exclude certain one-time items, including earnings
before taxes on income (excluding one-time items), net earnings
attributable to Kirby (excluding one-time items), and diluted
earnings per share (excluding one-time items). A reconciliation of
these measures with GAAP is included in this press release.
Management believes the exclusion of certain one-time items from
these financial measures enables it and investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of Kirby’s normal operating
results. This press release additionally includes a non-GAAP
financial measure, free cash flow, which Kirby defines as net cash
provided by operating activities less capital expenditures. A
reconciliation of free cash flow with GAAP is included in this
press release. Kirby uses free cash flow to assess and forecast
cash flow and to provide additional disclosures on the Company’s
liquidity. Free cash flow does not imply the amount of residual
cash flow available for discretionary expenditures as it excludes
mandatory debt service requirements and other non-discretionary
expenditures. This press release also includes marine
transportation performance measures, consisting of ton miles,
revenue per ton mile, towboats operated and delay days. Comparable
marine transportation performance measures for the 2022 year and
quarters are available in the Investor Relations section of Kirby’s
website, www.kirbycorp.com, under Financials.
Forward-Looking Statements
Statements contained in this press release with respect to the
future are forward-looking statements. These statements reflect
management’s reasonable judgment with respect to future events.
Forward-looking statements involve risks and uncertainties. Actual
results could differ materially from those anticipated as a result
of various factors, including adverse economic conditions, industry
competition and other competitive factors, adverse weather
conditions such as high water, low water, tropical storms,
hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other
pandemics, marine accidents, lock delays, fuel costs, interest
rates, construction of new equipment by competitors, government and
environmental laws and regulations, and the timing, magnitude and
number of acquisitions made by the Company. Forward-looking
statements are based on currently available information and Kirby
assumes no obligation to update any such statements. A list of
additional risk factors can be found in Kirby’s annual report on
Form 10-K for the year ended December 31, 2022.
About Kirby Corporation Kirby
Corporation, based in Houston, Texas, is the nation’s largest
domestic tank barge operator transporting bulk liquid products
throughout the Mississippi River System, on the Gulf Intracoastal
Waterway, and coastwise along all three United States coasts. Kirby
transports petrochemicals, black oil, refined petroleum products
and agricultural chemicals by tank barge. In addition, Kirby
participates in the transportation of dry-bulk commodities in
United States coastwise trade. Through the distribution and
services segment, Kirby provides after-market service and genuine
replacement parts for engines, transmissions, reduction gears,
electric motors, drives, and controls, specialized electrical
distribution and control systems, energy storage battery systems,
and related equipment used in oilfield services, marine, power
generation, on-highway, and other industrial applications. Kirby
also rents equipment including generators, industrial compressors,
high capacity lift trucks, and refrigeration trailers for use in a
variety of industrial markets. For the oil and gas market, Kirby
manufactures and remanufactures oilfield service equipment,
including pressure pumping units, and manufactures electric power
generation equipment, specialized electrical distribution and
control equipment, and high capacity energy storage/battery systems
for oilfield customers.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS |
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
(unaudited,
$ in thousands, except per share amounts) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Marine transportation |
|
$ |
429,885 |
|
|
$ |
433,040 |
|
|
$ |
1,269,342 |
|
|
$ |
1,194,231 |
|
Distribution and services |
|
|
334,887 |
|
|
|
312,803 |
|
|
|
1,023,122 |
|
|
|
860,358 |
|
Total revenues |
|
|
764,772 |
|
|
|
745,843 |
|
|
|
2,292,464 |
|
|
|
2,054,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
|
530,541 |
|
|
|
552,392 |
|
|
|
1,618,690 |
|
|
|
1,526,872 |
|
Selling, general and administrative |
|
|
79,125 |
|
|
|
75,381 |
|
|
|
250,870 |
|
|
|
221,721 |
|
Taxes, other than on income |
|
|
9,666 |
|
|
|
9,121 |
|
|
|
28,610 |
|
|
|
28,332 |
|
Depreciation and amortization |
|
|
53,445 |
|
|
|
50,419 |
|
|
|
156,251 |
|
|
|
150,498 |
|
Gain on disposition of assets |
|
|
(1,528 |
) |
|
|
(377 |
) |
|
|
(4,230 |
) |
|
|
(7,971 |
) |
Total costs and expenses |
|
|
671,249 |
|
|
|
686,936 |
|
|
|
2,050,191 |
|
|
|
1,919,452 |
|
Operating income |
|
|
93,523 |
|
|
|
58,907 |
|
|
|
242,273 |
|
|
|
135,137 |
|
Other
income |
|
|
1,589 |
|
|
|
3,805 |
|
|
|
9,296 |
|
|
|
11,853 |
|
Interest
expense |
|
|
(13,386 |
) |
|
|
(11,755 |
) |
|
|
(38,893 |
) |
|
|
(32,598 |
) |
Earnings before taxes on income |
|
|
81,726 |
|
|
|
50,957 |
|
|
|
212,676 |
|
|
|
114,392 |
|
Provision
for taxes on income |
|
|
(18,722 |
) |
|
|
(11,713 |
) |
|
|
(51,733 |
) |
|
|
(28,956 |
) |
Net earnings |
|
|
63,004 |
|
|
|
39,244 |
|
|
|
160,943 |
|
|
|
85,436 |
|
Net
(earnings) loss attributable to noncontrolling interests |
|
|
(40 |
) |
|
|
(153 |
) |
|
|
86 |
|
|
|
(454 |
) |
Net earnings attributable to Kirby |
|
$ |
62,964 |
|
|
$ |
39,091 |
|
|
$ |
161,029 |
|
|
$ |
84,982 |
|
Net earnings
per share attributable to Kirby common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.06 |
|
|
$ |
0.65 |
|
|
$ |
2.70 |
|
|
$ |
1.41 |
|
Diluted |
|
$ |
1.05 |
|
|
$ |
0.65 |
|
|
$ |
2.68 |
|
|
$ |
1.41 |
|
Common stock
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
59,383 |
|
|
|
59,896 |
|
|
|
59,721 |
|
|
|
60,088 |
|
Diluted |
|
|
59,746 |
|
|
|
60,182 |
|
|
|
60,033 |
|
|
|
60,369 |
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION |
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited,
$ in thousands) |
|
EBITDA:(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Kirby |
|
$ |
62,964 |
|
|
$ |
39,091 |
|
|
$ |
161,029 |
|
|
$ |
84,982 |
|
Interest expense |
|
|
13,386 |
|
|
|
11,755 |
|
|
|
38,893 |
|
|
|
32,598 |
|
Provision for taxes on income |
|
|
18,722 |
|
|
|
11,713 |
|
|
|
51,733 |
|
|
|
28,956 |
|
Depreciation and amortization |
|
|
53,445 |
|
|
|
50,419 |
|
|
|
156,251 |
|
|
|
150,498 |
|
|
|
$ |
148,517 |
|
|
$ |
112,978 |
|
|
$ |
407,906 |
|
|
$ |
297,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
$ |
103,718 |
|
|
$ |
41,204 |
|
|
$ |
274,963 |
|
|
$ |
120,263 |
|
Acquisitions
of businesses and marine equipment |
|
$ |
37,500 |
|
|
$ |
— |
|
|
$ |
37,500 |
|
|
$ |
3,900 |
|
|
|
September 30,2023 |
|
|
December 31,2022 |
|
|
|
(unaudited,
$ in thousands) |
|
Cash and cash equivalents |
|
$ |
42,116 |
|
|
$ |
80,577 |
|
Long-term
debt, including current portion |
|
$ |
1,067,856 |
|
|
$ |
1,079,618 |
|
Total
equity |
|
$ |
3,158,082 |
|
|
$ |
3,045,168 |
|
Debt to
capitalization ratio |
|
|
25.3 |
% |
|
|
26.2 |
% |
MARINE
TRANSPORTATION STATEMENTS OF EARNINGS |
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
(unaudited,
$ in thousands) |
|
Marine transportation revenues |
|
$ |
429,885 |
|
|
$ |
433,040 |
|
|
$ |
1,269,342 |
|
|
$ |
1,194,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
|
278,979 |
|
|
|
306,817 |
|
|
|
836,620 |
|
|
|
855,519 |
|
Selling, general and administrative |
|
|
33,000 |
|
|
|
32,794 |
|
|
|
101,592 |
|
|
|
93,424 |
|
Taxes, other than on income |
|
|
7,783 |
|
|
|
7,346 |
|
|
|
23,052 |
|
|
|
23,156 |
|
Depreciation and amortization |
|
|
46,656 |
|
|
|
44,370 |
|
|
|
137,324 |
|
|
|
132,667 |
|
Total costs and expenses |
|
|
366,418 |
|
|
|
391,327 |
|
|
|
1,098,588 |
|
|
|
1,104,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
$ |
63,467 |
|
|
$ |
41,713 |
|
|
$ |
170,754 |
|
|
$ |
89,465 |
|
Operating
margin |
|
|
14.8 |
% |
|
|
9.6 |
% |
|
|
13.5 |
% |
|
|
7.5 |
% |
DISTRIBUTION
AND SERVICES STATEMENTS OF EARNINGS |
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited,
$ in thousands) |
|
Distribution and services revenues |
|
$ |
334,887 |
|
|
$ |
312,803 |
|
|
$ |
1,023,122 |
|
|
$ |
860,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
|
251,163 |
|
|
|
245,223 |
|
|
|
779,684 |
|
|
|
670,938 |
|
Selling, general and administrative |
|
|
43,701 |
|
|
|
39,289 |
|
|
|
138,584 |
|
|
|
121,864 |
|
Taxes, other than on income |
|
|
1,812 |
|
|
|
1,749 |
|
|
|
5,370 |
|
|
|
5,067 |
|
Depreciation and amortization |
|
|
5,017 |
|
|
|
4,274 |
|
|
|
13,656 |
|
|
|
12,513 |
|
Total costs and expenses |
|
|
301,693 |
|
|
|
290,535 |
|
|
|
937,294 |
|
|
|
810,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
$ |
33,194 |
|
|
$ |
22,268 |
|
|
$ |
85,828 |
|
|
$ |
49,976 |
|
Operating
margin |
|
|
9.9 |
% |
|
|
7.1 |
% |
|
|
8.4 |
% |
|
|
5.8 |
% |
OTHER COSTS
AND EXPENSES |
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
(unaudited,
$ in thousands) |
|
General corporate expenses |
|
$ |
4,666 |
|
|
$ |
5,451 |
|
|
$ |
18,539 |
|
|
$ |
12,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
disposition of assets |
|
$ |
(1,528 |
) |
|
$ |
(377 |
) |
|
$ |
(4,230 |
) |
|
$ |
(7,971 |
) |
ONE-TIME CHARGES
The 2023 and 2022 first nine months GAAP results
include certain one-time charges. The following is a reconciliation
of GAAP earnings to non-GAAP earnings, excluding the one-time
items, for earnings before tax (pre-tax), net earnings attributable
to Kirby (after-tax), and diluted earnings per share (per
share):
|
|
Third Quarter 2023 |
|
|
First Nine Months 2023 |
|
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
|
|
|
|
(unaudited,
$ in millions except per share amounts) |
|
GAAP earnings |
|
$ |
81.7 |
|
|
$ |
63.0 |
|
|
$ |
1.05 |
|
|
$ |
212.7 |
|
|
$ |
161.0 |
|
|
$ |
2.68 |
|
Costs
related to strategic review and shareholder engagement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.0 |
|
|
|
2.4 |
|
|
|
0.04 |
|
IRS refund
interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.7 |
) |
|
|
(2.2 |
) |
|
|
(0.04 |
) |
Earnings,
excluding one-time items(2) |
|
$ |
81.7 |
|
|
$ |
63.0 |
|
|
$ |
1.05 |
|
|
$ |
213.0 |
|
|
$ |
161.2 |
|
|
$ |
2.68 |
|
|
|
Third Quarter 2022 |
|
|
First Nine Months 2022 |
|
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
|
|
|
|
|
(unaudited,
$ in millions except per share amounts) |
|
GAAP earnings |
|
$ |
51.0 |
|
|
$ |
39.1 |
|
|
$ |
0.65 |
|
|
$ |
114.4 |
|
|
$ |
85.0 |
|
|
$ |
1.41 |
|
Severance
expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
|
|
1.3 |
|
|
|
0.02 |
|
Earnings,
excluding one-time items(2) |
|
$ |
51.0 |
|
|
$ |
39.1 |
|
|
$ |
0.65 |
|
|
$ |
115.9 |
|
|
$ |
86.3 |
|
|
$ |
1.43 |
|
RECONCILIATION OF FREE CASH
FLOW
The following is a reconciliation of GAAP net
cash provided by operating activities to non-GAAP free cash
flow(2):
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022(3) |
|
|
2023 |
|
|
2022(3) |
|
|
|
(unaudited,
$ in millions) |
|
Net cash provided by operating activities |
|
$ |
96.3 |
|
|
$ |
65.6 |
|
|
$ |
324.2 |
|
|
$ |
161.2 |
|
Less:
Capital expenditures |
|
|
(103.8 |
) |
|
|
(41.2 |
) |
|
|
(275.0 |
) |
|
|
(120.3 |
) |
Free cash
flow(2) |
|
$ |
(7.5 |
) |
|
$ |
24.4 |
|
|
$ |
49.2 |
|
|
$ |
40.9 |
|
MARINE
TRANSPORTATION PERFORMANCE MEASUREMENTS |
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
|
Nine Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Inland
Performance Measurements: |
|
|
|
|
|
|
|
|
|
|
|
|
Ton Miles (in millions)(4) |
|
|
3,291 |
|
|
|
3,706 |
|
|
|
10,231 |
|
|
|
10,410 |
|
Revenue/Ton Mile (cents/tm)(5) |
|
|
10.7 |
|
|
|
9.3 |
|
|
|
10.2 |
|
|
|
9.0 |
|
Towboats operated (average)(6) |
|
|
274 |
|
|
|
274 |
|
|
|
279 |
|
|
|
269 |
|
Delay Days(7) |
|
|
1,548 |
|
|
|
1,253 |
|
|
|
7,990 |
|
|
|
7,152 |
|
Average cost per gallon of fuel consumed |
|
$ |
2.71 |
|
|
$ |
4.24 |
|
|
$ |
2.97 |
|
|
$ |
3.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barges
(active): |
|
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
|
1,071 |
|
|
|
1,035 |
|
Coastal tank barges |
|
|
|
|
|
|
|
|
28 |
|
|
|
29 |
|
Offshore dry-cargo barges |
|
|
|
|
|
|
|
|
4 |
|
|
|
4 |
|
Barrel
capacities (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
|
23.6 |
|
|
|
23.0 |
|
Coastal tank barges |
|
|
|
|
|
|
|
|
2.9 |
|
|
|
3.0 |
|
(1) Kirby has historically evaluated its operating performance
using numerous measures, one of which is EBITDA, a non-GAAP
financial measure. Kirby defines EBITDA as net earnings
attributable to Kirby before interest expense, taxes on income, and
depreciation and amortization. EBITDA is presented because of its
wide acceptance as a financial indicator. EBITDA is one of the
performance measures used in calculating performance compensation
pursuant to Kirby’s annual incentive plan. EBITDA is also used by
rating agencies in determining Kirby’s credit rating and by
analysts publishing research reports on Kirby, as well as by
investors and investment bankers generally in valuing companies.
EBITDA is not a calculation based on generally accepted accounting
principles and should not be considered as an alternative to, but
should only be considered in conjunction with, Kirby’s GAAP
financial information. (2) Kirby uses certain non-GAAP
financial measures to review performance excluding certain one-time
items including: earnings before taxes on income, excluding
one-time items; net earnings attributable to Kirby, excluding
one-time items; and diluted earnings per share, excluding one-time
items. Management believes the exclusion of certain one-time items
from these financial measures enables it and investors to assess
and understand operating performance, especially when comparing
those results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of the company's normal operating
results. Kirby also uses free cash flow, which is defined as net
cash provided by operating activities less capital expenditures, to
assess and forecast cash flow and to provide additional disclosures
on the Company’s liquidity. Free cash flow does not imply the
amount of residual cash flow available for discretionary
expenditures as it excludes mandatory debt service requirements and
other non-discretionary expenditures. These non-GAAP financial
measures are not calculations based on generally accepted
accounting principles and should not be considered as an
alternative to, but should only be considered in conjunction with
Kirby’s GAAP financial information. (3) See Kirby’s annual
report on Form 10-K for the year ended December 31, 2022 and its
quarterly report on Form 10-Q for the quarter ended September 30,
2022 for amounts provided by (used in) investing and financing
activities. (4) Ton miles indicate fleet productivity by
measuring the distance (in miles) a loaded tank barge is moved.
Example: A typical 30,000 barrel tank barge loaded with 3,300 tons
of liquid cargo is moved 100 miles, thus generating 330,000 ton
miles. (5) Inland marine transportation revenues divided by
ton miles. Example: Third quarter 2023 inland marine transportation
revenues of $353.6 million divided by 3,291 million inland marine
transportation ton miles = 10.7 cents. (6) Towboats operated
are the average number of owned and chartered towboats operated
during the period. (7) Delay days measures the lost time
incurred by a tow (towboat and one or more tank barges) during
transit. The measure includes transit delays caused by weather,
lock congestion and other navigational factors.
Contact: Kurt Niemietz 713-435-1077
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