Kirby Corporation Announces 2013 First Quarter Results

            Kirby Corporation Announces 2013 First Quarter Results

-2013 first quarter earnings per share were $1.00 compared with $.91 earned in
the 2012 first quarter

-2013 first quarter included a credit of $.05 per share from reducing United's
three-year earnout contingent liability

-2013 second quarter earnings per share guidance is $1.00 to $1.10 compared
with $.85 earned in the 2012 second quarter

-2013 year earnings per share guidance raised to $4.10 to $4.30 compared with
$3.73 earned in 2012

PR Newswire

HOUSTON, April 24, 2013

HOUSTON, April 24, 2013 /PRNewswire/ -- Kirby Corporation ("Kirby") (NYSE:KEX)
today announced net earnings attributable to Kirby for the first quarter ended
March 31, 2013 of $56.6 million, or $1.00 per share, compared with $50.9
million, or $.91 per share, for the 2012 first quarter. Consolidated revenues
for the 2013 first quarter were $558.8 million compared with $566.9 million
reported for the 2012 first quarter.

Kirby's 2013 first quarter results included a $4.3 million before taxes, or
$.05 per share, credit reducing the fair value of the contingent earnout
liability associated with the acquisition of United Holdings LLC ("United") in
April 2011. The 2012 first quarter results included a $4.2 million before
taxes, or $.05 per share, charge increasing the fair value of the United
contingent earnout liability, and a $2.4 million before taxes, or $.03 per
share, severance charge associated with the integration of Kirby Offshore
Marine, LLC ("Kirby Offshore Marine") into Kirby.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "We were
pleased with our overall first quarter performance, the continued strength of
our inland tank barge markets and particularly the improvement in our coastal
tank barge markets where we are experiencing consistently improving equipment
utilization and pricing. We continue to experience ongoing softness in our
land-based diesel engine services market which we anticipate will continue
through most of 2013. We are making inroads into transitioning United's
business to a service and remanufacturing model with an emphasis on servicing
existing land-based oil service equipment."

Mr. Pyne continued, "I also want to comment on our Chief Executive Officer
succession plan at Kirby. I have had the honor of serving as Kirby's Chief
Executive Officer since 1995. I have decided to step down as Chief Executive
Officer early next year and have been in discussions with the Kirby Board of
Directors regarding our intention to transition my Chief Executive Officer
responsibilities to David Grzebinski, Kirby's current Executive Vice President
and Chief Financial Officer. I intend to remain as an active executive
Chairman of the Board. Kirby is blessed with a very strong management team
and dedicated employees, and I look forward to continuing to work with David
and the Kirby management team in creating value for our shareholders."

Segment Results – Marine Transportation
Marine transportation revenues for the 2013 first quarter were $418.5 million
compared with $336.0 million for the 2012 first quarter, and operating income
for the 2013 first quarter was $89.3 million compared with $68.5 million for
the 2012 first quarter.

Inland marine transportation continued its strong performance with tank barge
utilization consistently in the 90% to 95% range and favorable pricing
trends. The demand for the transportation of petrochemicals, black oil,
including crude oil, refined petroleum products and agricultural chemicals on
the inland waterways remained strong and consistent with 2012.

Coastal marine transportation continued to improve with tank barge utilization
in the 90% range, a significant improvement over the 75% range reported in the
2012 first quarter, and a continued improvement over the 85% to 90% range
reported for the 2012 fourth quarter, all leading to higher term and spot
contract pricing. Coastal revenues represented 32% of the marine
transportation 2013 first quarter revenues.

The marine transportation segment's 2013 first quarter operating margin was
21.3% compared with 20.4% for the first quarter of 2012.

Segment Results – Diesel Engine Services
Diesel engine services revenues for the 2013 first quarter were $140.3 million
compared with $231.0 million for the 2012 first quarter, and operating income
was $14.0 million, including a $4.3 million credit reducing the fair value of
the United contingent earnout liability. This compares with operating income
of $23.6 million for the 2012 first quarter that included a $4.2 million
charge to the United contingent earnout liability.

The lower revenue and operating income reflected a continuation of a weaker
environment for the manufacture of pressure pumping units, as well as a
decline in the sale and service of land-based engines, transmissions and
parts. Some of this decline has been partially offset with the emphasis
placed on the remanufacturing of pressure pumping units.

During the 2013 first quarter, the marine diesel engine services market
remained stable, benefiting from major service projects for Gulf Coast
customers and partially offset by the deferral of scheduled service projects
by Midwest customers negatively impacted by the decline in bulk shipments of
coal and grain due to low water conditions on the Mississippi River during
2012. The power generation market benefited from major generator set upgrades
and parts sales for both domestic and international power generation
customers.

The diesel engine services operating margin was 10.0% for the 2013 first
quarter, including the positive earnings impact of the $4.3 million credit to
the contingent earnout liability, compared with 10.2% for the 2012 first
quarter.

Cash Generation
Kirby continued to generate strong cash flow during the 2013 first quarter
with EBITDA of $139.9 million compared with $124.7 million for the 2012 first
quarter. The cash flow was used in part to fund capital expenditures of $71.2
million, including $55.1 million for new inland tank barge and towboat
construction, $6.9 million for progress payments on the construction of two
offshore articulated dry-bulk barge and tug units, and $9.2 million primarily
for upgrades to the existing inland and coastal fleets. Total debt as of
March 31, 2013 was $1.1 billion and Kirby's debt-to-capitalization ratio was
38.4%.

Outlook
Commenting on the 2013 second quarter and full year market outlook and
guidance, Mr. Pyne said, "Our earnings guidance for the 2013 second quarter is
$1.00 to $1.10 per share and we are raising our 2013 year guidance to $4.10 to
$4.30, including the $.05 per share first quarter credit to United's
contingent earnout liability. Our second quarter guidance assumes improved
seasonal operating conditions in both our inland and coastal marine
transportation markets. Inland fleet utilization is projected to remain in
the 90% to 95% range, leading to continued favorable term and spot contract
pricing. For our coastal fleet, second quarter utilization is projected to
remain in the 90% range with continued favorable term and spot contract
pricing. However, our results will be impacted by a heavy second quarter
coastal fleet maintenance schedule. For our diesel engine services segment,
we feel we are at the bottom of the land-based manufacturing and services
cycle, but we are not forecasting an improvement in the land-based market
until late 2013 or early 2014. For the marine and power generation sectors, we
anticipate continued stable markets."

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

Conference Call
A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
April 25, 2013, to discuss the 2013 first quarter performance as well as the
outlook for the 2013 second 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 34667529. An
audio playback will be available at 1:00 p.m. central time on Thursday, April
25, through 5:00 p.m. central time on Friday, May 24, 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.

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 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, 2012 filed with the Securities and Exchange Commission.

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, refined petroleum products, black oil 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 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.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                            First Quarter
                                            2013              2012
                                            (unaudited, $ in thousands except

                                            per share amounts)
Revenues:
 Marine transportation                  $   418,518     $   335,957
 Diesel engine services                 140,267           230,978
                                            558,785           566,935
Costs and expenses:
 Costs of sales and operating expenses  369,274           384,359
 Selling, general and administrative    44,156            53,100
 Taxes, other than on income            4,478             3,914
 Depreciation and amortization          40,996            36,474
 Loss on disposition of assets          32                28
                                            458,936           477,875
 Operating income                        99,849            89,060
Other income                                75                149
Interest expense                            (7,988)           (5,840)
 Earnings before taxes on income         91,936            83,369
Provision for taxes on income               (34,384)          (31,490)
 Net earnings                            57,552            51,879
Less: Net earnings attributable to         (974)             (935)
noncontrolling interests
 Net earnings attributable to Kirby      $   56,578     $   50,944
Net earnings per share attributable to
Kirby common stockholders:
 Basic                                  $     1.00    $     0.91
 Diluted                                $     1.00    $     0.91
Common stock outstanding (in thousands):
 Basic                                  56,268            55,378
 Diluted                                56,455            55,635
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                                            First Quarter
                                            2013              2012
                                            (unaudited, $ in thousands)
EBITDA:^(1)
 Net earnings attributable to Kirby     $    56,578    $    50,944
 Interest expense                       7,988             5,840
 Provision for taxes on income          34,384            31,490
 Depreciation and amortization          40,996            36,474
                                            $   139,946     $   124,748
Capital expenditures                        $    71,157    $    61,867
                                            March 31,
                                            2013              2012
                                            (unaudited, $ in thousands)
Long-term debt, including current portion   $ 1,103,460       $   772,994
Total equity                                $ 1,769,440      $ 1,510,167
Debt to capitalization ratio                38.4%             33.9%
MARINE TRANSPORTATION STATEMENTS OF EARNINGS
                                            First Quarter
                                            2013              2012
                                            (unaudited, $ in thousands)
Marine transportation revenues              $   418,518     $   335,957
Costs and expenses:
 Costs of sales and operating expenses  259,229           203,407
 Selling, general and administrative    28,976            28,519
 Taxes, other than on income            3,910             3,452
 Depreciation and amortization          37,150            32,089
                                            329,265           267,467
 Operating income                   $   89,253     $   68,490
 Operating margins                  21.3 %            20.4 %
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
                                            First Quarter
                                            2013              2012
                                            (unaudited, $ in thousands)
Diesel engine services revenues             $   140,267     $   230,978
Costs and expenses:
 Costs of sales and operating expenses  110,045           180,952
 Selling, general and administrative    12,765            22,394
 Taxes, other than on income            552               450
 Depreciation and amortization          2,883             3,628
                                            126,245           207,424
 Operating income                   $   14,022     $   23,554
 Operating margins                  10.0 %            10.2 %
OTHER COSTS AND EXPENSES
                                            First Quarter
                                            2013              2012
                                            (unaudited, $ in thousands)
General corporate expenses                  $    3,394    $    2,956
Loss on disposition of assets               $       32  $       28

MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
                                              First Quarter
                                              2013             2012
Inland Performance Measurements:
 Ton Miles (in millions)^(2)              3,012            3,282
 Revenue/Ton Mile (cents/tm)^(3)          9.3              8.1
 Towboats operated (average)^(4)          256              242
 Delay Days^(5)                           2,049            2,471
 Average cost per gallon of fuel consumed $     3.25  $     3.16
Barges (active):
 Inland tank barges                       844              806
 Coastal tank barges                      82               58
 Offshore dry-cargo barges                7                4
Barrel Capacities (in millions):
 Inland tank barges                       16.9             16.0
 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
^(1)   Kirby's incentive bonus 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) First quarter 2013 inland marine transportation revenues of
       $281,400,000 divided by 3,012,000,000 marine transportation ton miles =
       9.3 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, 713-435-1135
 
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