Kirby Corporation Announces 2012 Fourth Quarter And Year Results

       Kirby Corporation Announces 2012 Fourth Quarter And Year Results

- 2012 fourth quarter earnings per share were $1.03 compared with $1.00 in the
2011 fourth quarter

- 2012 year earnings per share were $3.73 compared with $3.33 for 2011

- 2012 fourth quarter included a credit of $.09 per share from reducing
United's three-year earnout contingent liability

- 2013 first quarter earnings per share guidance is $.82 to $.92 compared with
$.91 earned in the 2012 first quarter

- Full year 2013 earnings per share guidance is $4.00 to $4.20 compared with
$3.73 earned in 2012

PR Newswire

HOUSTON, Jan. 30, 2013

HOUSTON, Jan. 30, 2013 /PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE:KEX)
today announced net earnings attributable to Kirby for the fourth quarter
ended December 31, 2012 of $57.9 million, or $1.03 per share, compared with
$56.2 million, or $1.00 per share, for the 2011 fourth quarter. Revenues for
the 2012 fourth quarter were $512.6 million compared with $550.1 million for
the 2011 fourth quarter.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "Our fourth
quarter results benefited from higher demand and favorable pricing in our
coastal marine transportation markets, as well as a contribution from our two
fourth quarter coastal acquisitions. We were also able to manage through the
Mississippi River System's low water issues and Hurricane Sandy with only an
estimated $.02 to $.03 per share negative impact. Our land-based diesel
engine services market remained weak, a reflection of the current state of the
United States weak oil service industry and corresponding weak pressure
pumping industry. As a result of the lower land-based operating results, we
recorded an $8.2 million before taxes, or $.09 per share, fourth quarter
credit reducing the fair value of the contingent earnout liability associated
with the acquisition of United Holdings in April 2011."

Kirby reported net earnings attributable to Kirby for the 2012 year of $209.4
million, or $3.73 per share, compared with $183.0 million, or $3.33 per share,
for 2011. Consolidated revenues for 2012 were $2.11 billion compared with
$1.85 billion for 2011.

Segment Results – Marine Transportation
Marine transportation revenues for the 2012 fourth quarter were $381.0
million, compared with $335.1 million for the 2011 fourth quarter, and
operating income for the 2012 fourth quarter was $89.8 million compared with
$73.0 million for the fourth quarter of 2011.

Inland tank barge fleet utilization during the fourth quarter remained in the
90% to 95% range with favorable pricing trends, reflecting a continued healthy
demand for the transportation of petrochemical, black oil products and refined
petroleum products. With the exception of persistent low water conditions on
the Mississippi River System which led to lower revenues and ton miles,
weather conditions during the fourth quarter were consistent with normal
seasonal weather.

Kirby's coastal fleet generated approximately 25% of the marine transportation
2012 fourth quarter revenues. The operating results reflected higher fleet
utilization in the coastal markets, as well as higher pricing levels. The
results also included the accretive acquisitions of Allied Transportation
Company vessels on November 1, 2012 and Penn Maritime Inc. on December 14,
2012.

The marine transportation operating margin for the 2012 fourth quarter was
23.6% compared with 21.8% for the fourth quarter of 2011. The higher 2012
fourth quarter operating margin reflected continued favorable inland tank
barge utilization and pricing, as well as improved coastal tank barge
utilization and pricing, partially offset by the negative impact of the low
water conditions and Hurricane Sandy. 

Segment Results – Diesel Engine Services
Diesel engine services revenues for the 2012 fourth quarter were $131.6
million compared with $215.0 million for the 2011 fourth quarter. Operating
income for the 2012 fourth quarter was $13.1 million, including an $8.2
million credit reducing the fair value of the contingent earnout liability
associated with the acquisition of United. This compares with operating
income of $22.7 million for the 2011 fourth quarter. The 2012 fourth quarter
decrease in revenue and operating income reflects a significant reduction in
the manufacturing of pressure pumping units, as well as a decline in the sale
of engines, transmissions and parts. This has been partially offset by the
demand for the remanufacturing of pressure pumping units and the manufacture
of oil service blenders, pumpers and cementers.

During the 2012 fourth quarter, marine diesel engine services market
conditions remained stable, although the Midwest market was negatively
impacted by the low water conditions on the Mississippi River that led to the
deferrals of maintenance by certain marine customers. The power generation
market continued to benefit from strong parts sales during the fourth quarter.

The diesel engine services operating margin was 10.0% for the 2012 fourth
quarter, including the positive earnings impact of the $8.2 million credit to
the contingent earnout liability, compared with 10.6% for the 2011 fourth
quarter. 

Cash Generation
Kirby continued to generate strong cash flow during 2012, with EBITDA of
$506.9 million compared with $436.2 million for 2011. The cash flow was used
in part to fund capital expenditures of $312.2 million, including $135.6
million for new inland tank barge and towboat construction, $60.4 million for
progress payments on the construction of two offshore dry-bulk barge and tug
units scheduled for completion in the 2013 first half, and $116.2 million
primarily for upgrades to the existing inland and coastal fleets. Total debt
as of December 31, 2012 was $1.14 billion and the debt-to-capitalization ratio
was 39.9%. 

Outlook
Commenting on the 2013 full year and first quarter market outlook and
guidance, Mr. Pyne said, "Our earnings per share guidance for 2013 is $4.00 to
$4.20 per share compared with $3.73 for 2012. Our 2013 guidance assumes
continued strong inland marine transportation markets with 90% to 95%
equipment utilization levels, leading to favorable term and spot contract
pricing. For our coastal marine transportation markets, our 2013 guidance
assumes higher equipment utilization levels than 2012, leading to favorable
term and spot contract pricing trends. Our guidance assumes our diesel engine
services land-based market will continue to experience ongoing softness
throughout 2013, and our marine and power generation markets will be
consistent with 2012. However, the major contributor between our high and low
end 2013 guidance is our coastal marine transportation markets and its
equipment utilization rates and pricing trends."

Regarding the 2013 first quarter guidance, Mr. Pyne stated, "Our 2013 first
quarter earnings guidance is $.82 to $.92 per share compared with $.91 per
share reported for the 2012 first quarter. The 2012 first quarter's results
included a very strong land-based diesel engine services market, which we do
not believe will reoccur in 2013. The first quarter guidance includes
unfavorable winter weather conditions for our inland and coastal
transportation markets, as well as continued low water issues and related
restrictions on a portion of the upper Mississippi River, primarily between
St. Louis, Missouri and Cairo, Illinois. We anticipate continued strong
inland equipment utilization with favorable pricing trends, as well as
stronger coastal equipment utilization with improving pricing trends. For our
diesel engine services segment, we anticipate a continued weak land-based
market and stable marine and power generation markets."

Mr. Pyne continued, "Our 2013 capital spending guidance range is $190 to $200
million, including approximately $115 million for the construction of 55
inland tank barges and three inland towboats, and approximately $10 million
for final progress payments on the construction of two offshore dry-bulk barge
and tugboat units scheduled for delivery in the 2013 first half. The balance
of approximately $65 to $75 million is primarily capital upgrades and
improvements to existing marine equipment."

Conference Call
A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
January 31, 2013, to discuss the 2012 fourth quarter and year performance, as
well as the outlook for the 2013 first quarter and year. The conference call
number is 800-446-2782 for domestic callers and 847-413-3235 for international
callers. The leader's name is Steve Holcomb. The confirmation number is
34078345. An audio playback will be available at 1:00 p.m. central time on
Thursday, January 31, through 5:00 p.m. central time on Friday, March 1, 2013
by dialing 888-843-7419 for domestic and 630-652-3042 for international
callers. A live audio webcast of the conference call will be available to the
public and a replay available after the call by visiting Kirby's website at
http://www.kirbycorp.com/.

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 include a
non-GAAP financial measure, EBITDA, which Kirby defines as net earnings
attributable to Kirby before interest expense, taxes on income, depreciation
and amortization. A reconciliation of EBITDA with GAAP net earnings
attributable to Kirby is included in this press release. This earnings press
release includes marine transportation performance measures, consisting of ton
miles, revenue per ton mile, towboats operated and delay days. Comparable
performance measures for the 2012 and 2011 years and quarters are available at
Kirby's web site, http://www.kirbycorp.com/, under the caption Performance
Measurements in the Investor Relations section.

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, the Gulf Intracoastal Waterway, coastwise along all
three United States coasts and in Alaska and Hawaii. Kirby transports
petrochemicals, black oil products, refined petroleum products and
agricultural chemicals by tank barge. Through the diesel engine services
segment, Kirby provides after-market service for medium-speed and high-speed
diesel engines and reduction gears used in marine and power generation
applications. Kirby also distributes and services high-speed diesel engines,
transmissions, pumps, compression products and manufactures and remanufactures
oilfield service equipment, including pressure pumping units, for land-based
pressure pumping and oilfield service markets.

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 cyclical or other
downturns in demand, significant pricing competition, unanticipated additions
to industry capacity, changes in the Jones Act or in U.S. maritime policy and
practice, fuel costs, interest rates, weather conditions, and timing,
magnitude and number of acquisitions made by Kirby. 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, 2011 filed with the Securities and Exchange Commission.





CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                        Fourth Quarter             Year
                        2012         2011          2012       2011
                        (unaudited, $ in thousands except per share amounts)
Revenues:
 Marine             $  380,970 $   335,112 $           $  
transportation                                     1,408,893     1,194,607
 Diesel engine      131,581      215,033       703,765       655,810
services
                        512,551      550,145       2,112,658     1,850,417
Costs and expenses:
 Costs of sales and 334,397      369,512       1,409,662     1,228,440
operating expenses
 Selling, general   37,711       49,102        178,483       170,386
and administrative
 Taxes, other than  3,243        2,711         14,519        13,179
on income
 Depreciation and   37,747       35,796        145,147       126,029
amortization
 Loss on            15           111           14            40
disposition of assets
                        413,113      457,232       1,747,825     1,538,074
 Operating income    99,438       92,913        364,833       312,343
 Other income          (45)         183           78            306
(expense)
 Interest expense      (6,588)      (5,817)       (24,385)      (17,902)
 Earnings before    92,805       87,279        340,526       294,747
taxes on income
 Provision for taxes   (34,231)     (30,510)      (127,907)     (109,255)
on income
 Net earnings       58,574       56,769        212,619       185,492
Less: Net earnings
attributable to         (686)        (599)         (3,181)       (2,466)
noncontrolling
interests
 Net earnings       $   57,888 $   56,170 $          $   
attributable to Kirby                              209,438       183,026
Net earnings per share
attributable to Kirby
common stockholders: ^

 Basic              $        $         $       $      
                        1.03         1.01         3.75          3.35
 Diluted            $        $         $       $      
                        1.03         1.00         3.73          3.33
Common stock
outstanding (in
thousands):
 Basic              55,615       55,206        55,466        54,191
 Diluted            55,795       55,453        55,674        54,413





CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                     Fourth Quarter                Year
                     2012           2011           2012            2011
                     (unaudited, $ in thousands)
EBITDA:^(1)
 Net earnings
attributable to      $   57,888   $   56,170   $   209,438   $ 183,026
Kirby
 Interest        6,588          5,817          24,385          17,902
expense
 Provision for   34,231         30,510         127,907         109,255
taxes on income
 Depreciation    37,747         35,796         145,147         126,029
and amortization
                     $   136,454  $   128,293  $  506,877    $ 436,212
Capital expenditures $    56,280 $    63,028 $  312,167    $ 226,238
Acquisitions of
businesses and       $  380,925   $    42,745 $  380,925    $ 859,512
marine equipment
                                                   December 31,
                                                   2012            2011
                                                   (unaudited, $ in thousands)
Long-term debt, including current portion          $ 1,135,110    $ 802,005
Total equity                                       $ 1,707,054    $ 1,454,158
Debt to capitalization                             39.9%           35.5%
ratio





MARINE TRANSPORTATION STATEMENTS OF EARNINGS
                              Fourth Quarter           Year
                              2012        2011         2012        2011
                              (unaudited, $ in thousands)
Marine transportation         $  380,970 $  335,112 $ 1,408,893 $ 1,194,607
revenues
Costs and expenses:
 Costs of sales and       226,502     202,193      848,540     717,443
operating expenses
 Selling, general and     27,770      25,832       105,934     91,688
administrative
 Taxes, other than on     2,930       2,639        12,807      11,991
income
 Depreciation and         33,928      31,423       129,857     111,292
amortization
                              291,130     262,087      1,097,138   932,414
 Operating income     $  89,840 $   73,025 $  311,755 $ 262,193
 Operating margins    23.6%       21.8%        22.1%       21.9%





DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
                            Fourth Quarter         Year
                            2012        2011        2012          2011
                            (unaudited, $ in thousands)
Diesel engine services      $  131,581 $  215,033 $   703,765 $  655,810
revenues
Costs and expenses:
 Costs of sales and     107,895     167,319     561,122       510,997
operating expenses
 Selling, general and   7,426       21,329      62,560        63,764
administrative
 Taxes, other than      302         61          1,667         1,143
income
 Depreciation and       2,847       3,616       12,030        11,801
amortization
                            118,470     192,325     637,379       587,705
 Operating income   $  13,111 $  22,708 $   66,386 $   68,105
 Operating margins  10.0%       10.6%       9.4%          10.4%





OTHER COSTS AND EXPENSES
                      Fourth Quarter              Year
                      2012           2011         2012             2011
                      (unaudited, $ in thousands)
General corporate     $   3,498   $   2,709 $   13,294    $  
expenses                                                           17,915
Loss on disposition   $      15 $        $       14 $     
of assets                            111                            40





MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
                                                Fourth Quarter Year
                                                2012    2011   2012   2011
Inland Performance Measurements:
 Ton Miles (in millions)^(2)              2,957   3,392  12,224 13,414
 Revenue/Ton Mile (cents/tm)^(3)          9.5     7.7    8.9    7.6
 Towboats operated (average)^(4)          253     239    245    240
 Delay Days^(5)                           1,479   1,721  6,358  6,777
 Average cost per gallon of fuel consumed $ 3.37  $ 3.14 $ 3.24 $ 3.08
Barges (active):
 Inland tank barges                                      841    819
 Coastal tank barges                                     81     59
 Offshore dry-cargo barges                               8      4
Barrel capacities (in millions):
 Inland tank barges                                      16.7   16.2
 Coastal tank barges                                     6.3    3.8



     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, depreciation and amortization. EBITDA is
     presented because of its wide acceptance as a financial indicator.
     EBITDA is one of the performance measures used in Kirby's incentive bonus
^(1) 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.
     Ton miles indicate fleet productivity by measuring the distance (in
^(2) 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.
     Inland marine transportation revenues divided by ton miles. Example:
^(3) Fourth quarter 2012 inland marine transportation revenues of $280,968,000
     divided by 2,957,000,000 marine transportation ton miles = 9.5 cents.
^(4) Towboats operated are the average number of owned and chartered towboats
     operated during the period.
     Delay days measures the lost time incurred by a tow (towboat and one or
^(5) more tank barges) during transit. The measure includes transit delays
     caused by weather, lock congestion and other navigational factors.



SOURCE Kirby Corporation

Website: http://www.kirbycorp.com
Contact: Steve Holcomb, +1-713-435-1135
 
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