Kirby Corporation Announces 2013 Second Quarter Results

           Kirby Corporation Announces 2013 Second Quarter Results

- 2013 second quarter earnings per share were $1.11 compared with $.85 earned
in the 2012 second quarter

- 2013 second quarter included a credit of $.07 per share from reducing
United's three-year earnout contingent liability

- 2013 second quarter included an estimated $.03 per share negative impact
from high water and lock closure delays

- 2013 third quarter earnings per share guidance is $1.05 to $1.15 compared
with $.95 earned in the 2012 third quarter

- 2013 year earnings per share guidance revised to $4.15 to $4.35 compared
with $3.73 earned in 2012

PR Newswire

HOUSTON, July 24, 2013

HOUSTON, July 24, 2013 /PRNewswire/ --Kirby Corporation ("Kirby") (NYSE: KEX)
today announced net earnings attributable to Kirby for the second quarter
ended June 30, 2013 of $63.1 million, or $1.11 per share, compared with $47.6
million, or $.85 per share, for the 2012 second quarter. Consolidated
revenues for the 2013 second quarter were $563.9 million compared with $511.8
million reported for the 2012 second quarter.

Kirby's 2013 second quarter results included a $6.1 million before taxes, or
$.07 per share, credit reducing the fair value of the contingent earnout
liability associated with the acquisition of United Holdings LLC ("United") in
April 2011. In addition, the 2013 second quarter included an estimated $.03
per share negative impact from high water on the Mississippi and Illinois
Rivers throughout the quarter, and the closure of the Algiers Lock, a major
lock on the Gulf Intracoastal Waterway near New Orleans.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "Our second
quarter results benefited from continued strong demand and favorable pricing
in our inland and coastal marine transportation markets. We were also able to
manage through the high water and lock closure issues with only an estimated
$.03 per share negative impact. Our land-based diesel engine services market
remained weak. However, there are signs the cycle has bottomed."

Kirby reported net earnings attributable to Kirby for the 2013 first six
months of $119.7 million, or $2.10 per share, compared with $98.5 million, or
$1.76 per share, for the first six months of 2012. Consolidated revenues for
the 2013 first six months were $1.12 billion compared with $1.08 billion for
the first six months of 2012.

Segment Results – Marine Transportation
Marine transportation revenues for the 2013 second quarter were $423.9 million
compared with $342.2 million for the 2012 second quarter. Operating income
for the 2013 second quarter was $97.6 million compared with $71.7 million for
the 2012 second quarter.

The inland marine transportation markets remained strong with fleet
utilization in the 90% to 95% range and continued favorable pricing trends.
High water on the Mississippi and Illinois Rivers throughout the quarter
resulted in increased transit times and additional horsepower requirements.
In addition, the closure of the Algiers Lock due to structural damage during
the entire second quarter created heavy congestion and multi-day delays in the
New Orleans area, and also resulted in delays at the Bayou Sorrels and Port
Allen Locks.

The coastal marine transportation markets also remained strong with fleet
utilization in the 90% range compared with 75% for the second quarter of 2012,
leading to higher term and spot contract pricing. The higher utilization
resulted from increased demand for crude oil and gas condensate movements and
expansion of the coastal customer base to include inland's major customers
with coastal requirements. As anticipated, the second quarter was negatively
impacted by a heavy fleet maintenance schedule, and resulting lost revenue
days and higher expenditures.

The marine transportation operating margin for the 2013 second quarter was
23.0% compared with 21.0% for the second quarter of 2012. The 2013 second
quarter margin reflected the overall strong inland and coastal demand and
equipment utilization, and higher term and spot contract pricing, partially
offset by the negative impact of the high water and lock issues and higher
maintenance impact of the coastal fleet.

Segment Results – Diesel Engine Services
Diesel engine services revenues for the 2013 second quarter were $140.0
million compared with $169.7 million for the 2012 second quarter. Operating
income for the 2013 second quarter was $14.9 million, including a $6.1 million
credit to the United contingent earnout liability, compared with operating
income of $15.1 million for the 2012 second quarter.

The decline in revenue primarily reflected a continued weakness in demand for
the manufacture of pressure pumping units, and lower sales and service of
land-based engines, transmissions and parts. The market for the
remanufacturing of older pressure pumping units remained steady. The marine
diesel engine services market benefited from large service projects for inland
and coastal customers, as well as service work for international drilling
rigs.

The diesel engine services operating margin was 10.7% for the 2013 second
quarter, including the positive impact of the $6.1 million credit to the
contingent earnout liability, compared with 8.9% for the 2012 second quarter.

Cash Generation
Cash flow remained strong during the 2013 first six months, with EBITDA of
$288.9 million compared with $242.8 million for the 2012 first six months.
The cash flow was used in part to fund capital expenditures of $168.2 million,
including $106.3 million for new inland tank barge and towboat construction,
$12.3 million for progress payments on the construction of two offshore
dry-bulk barge and tug units completed during the 2013 second quarter, and
$49.6 million primarily for upgrades to the existing inland and coastal
fleets. Total debt as of June 30, 2013 was $1.02 billion and Kirby's
debt-to-capitalization ratio was 35.7%.

Outlook
Commenting on the 2013 third quarter and full year market outlook and
guidance, Mr. Pyne said, "Our earnings guidance for the 2013 third quarter is
$1.05 to $1.15 per share compared with $.95 per share reported for the 2012
third quarter. For the 2013 year, we are raising our guidance to $4.15 to
$4.35 to reflect the net effect of the earnout credit and the impact of the
high water and lock issues. This compares with $3.73 per share for the 2012
year. Our third quarter guidance range reflects continued strong demand across
all inland marine transportation markets, 90% to 95% utilization levels, and
favorable pricing trends. We anticipate continued improvement in our coastal
marine transportation markets, 90% utilization levels, and improving pricing
trends. For our diesel engine services segment, we continue to believe we are
at the bottom of the cycle in our land-based market and should begin to see
some improvement later this year or early 2014. Our guidance assumes our
marine diesel and power generation sectors will remain consistent with the
2013 first half."

Mr. Pyne continued, "Our 2013 capital spending guidance range is currently
$230 to $240 million, including approximately $135 million for the
construction of 68 inland tank barges and three inland towboats, and
approximately $12 million in progress payments on the construction of two
offshore articulated dry-bulk barge and tugboat units placed in service in the
2013 second quarter. The balance of $83 to $93 million is primarily capital
upgrades and improvements to existing inland and coastal marine equipment. The
increase from the previous capital spending guidance range of $190 to $200
million is primarily related to new construction contracts signed in the 2013
second quarter for 52 inland tank barges to be delivered beginning in the 2013
fourth quarter and into the 2014 first half, plus additional capital upgrades
to our existing marine transportation fleet, principally the coastal fleet."

Conference Call
A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
July 25, 2013, to discuss the 2013 second quarter performance as well as the
outlook for the 2013 third 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 35242862. An
audio playback will be available at 1:00 p.m. central time on Thursday, July
25, through 5:00 p.m. central time on Friday, August 23, 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 year and quarters are available at Kirby's
website, 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
                       Second Quarter             Six Months
                       2013        2012           2013            2012
                       (unaudited, $ in thousands except per share amounts)
Revenues:
 Marine            $  423,868 $   342,195  $   842,386  $ 678,152
transportation
 Diesel engine     140,040     169,653        280,307         400,631
services
                       563,908     511,848        1,122,693       1,078,783
Costs and expenses:
 Costs of sales    369,587     345,916        738,861         730,275
and operating expenses
 Selling, general  40,938      43,199         85,094          96,299
and administrative
 Taxes, other than 4,397       3,907          8,875           7,821
on income
 Depreciation and  40,271      35,197         81,267          71,671
amortization
 Gain on           (537)       (69)           (505)           (41)
disposition of assets
                       454,656     428,150        913,592         906,025
 Operating income  109,252     83,698         209,101         172,758
 Other income         101         30             176             179
 Interest expense     (7,219)     (5,901)        (15,207)        (11,741)
 Earnings before   102,134     77,827         194,070         161,196
taxes on income
 Provision for taxes  (38,342)    (29,392)       (72,726)        (60,882)
on income
 Net earnings      63,792      48,435         121,344         100,314
Less: Net earnings
attributable to        (699)       (884)          (1,673)         (1,819)
noncontrolling
interests
 Net earnings      $  63,093 $   47,551  $    119,671 $   
attributable to Kirby                                             98,495
Net earnings per share
attributable to Kirby
common stockholders: ^

 Basic             $       $        $          $     
                       1.11         .85          2.11           1.76
 Diluted           $       $        $          $     
                       1.11         .85          2.10           1.76
Common stock
outstanding (in
thousands):
 Basic             56,339      55,428         56,305          55,403
 Diluted           56,529      55,640         56,493          55,638
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                       Second Quarter             Six Months
                       2013        2012           2013            2012
                       (unaudited, $ in thousands)
EBITDA:^(1)
 Net earnings      $  63,093  $   47,551   $   119,671   $  98,495
attributable to Kirby
 Interest expense  7,219       5,901          15,207          11,741
 Provision for     38,342      29,392         72,726          60,882
taxes on income
 Depreciation and  40,271      35,197         81,267          71,671
amortization
                       $ 148,925   $   118,041  $  288,871    $ 242,789
Capital expenditures   $  97,018 $    91,979 $  168,175    $ 153,846
                                                  June 30,
                                                  2013            2012
                                                  (unaudited, $ in thousands)
Long-term debt, including current portion         $ 1,021,240    $ 799,532
Total equity                                      $ 1,836,160    $ 1,561,230
Debt to capitalization ratio                      35.7%           33.9%



MARINE TRANSPORTATION STATEMENTS OF EARNINGS
                         Second Quarter            Six Months
                         2013         2012         2013         2012
                         (unaudited, $ in thousands)
Marine transportation    $  423,868  $  342,195 $ 842,386   $ 678,152
revenues
Costs and expenses:
 Costs of sales and  259,332      210,466      518,561      413,873
operating expenses
 Selling, general    26,439       24,886       55,415       53,405
and administrative
 Taxes, other than   3,928        3,433        7,838        6,885
on income
 Depreciation and    36,606       31,680       73,756       63,769
amortization
                         326,305      270,465      655,570      537,932
 Operating       $  97,563  $   71,730 $ 186,816   $ 140,220
income
 Operating       23.0%        21.0%        22.2%        20.7%
margins
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
                         Second Quarter            Six Months
                         2013         2012         2013         2012
                         (unaudited, $ in thousands)
Diesel engine services   $  140,040  $  169,653  $  280,307  $  400,631
revenues
Costs and expenses:
 Costs of sales and  110,255      135,450      220,300      316,402
operating expenses
 Selling, general    11,669       15,860       24,434       38,254
and administrative
 Taxes, other than   457          462          1,009        912
income
 Depreciation and    2,727        2,763        5,610        6,391
amortization
                         125,108      154,535      251,353      361,959
 Operating       $  14,932  $  15,118  $   28,954 $   38,672
income
 Operating       10.7%        8.9%         10.3%        9.7%
margins


OTHER COSTS AND EXPENSES
                         Second Quarter            Six Months
                         2013         2012         2013         2012
                         (unaudited, $ in thousands)
General corporate        $   3,780 $   3,219 $         $   
expenses                                           7,174       6,175
Gain on disposition of   $        $       $       $     
assets                   537          69           505           41



MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
                                         Second Quarter Six Months
                                         2013    2012   2013   2012
Inland Performance Measurements:
Ton Miles (in millions)^(2)              2,969   3,194  5,981  6,476
Revenue/Ton Mile (cents/tm)^(3)          9.7     8.3    9.5    8.2
Towboats operated (average)^(4)          262     239    259    240
Delay Days^(5)                           2,520   1,164  4,569  3,635
Average cost per gallon of fuel consumed $ 3.22  $ 3.35 $ 3.24 $ 3.26
Barges (active):
Inland tank barges                                      863    818
Coastal tank barges                                     79     57
Offshore dry-cargo barges                               8      4
Barrel capacities (in millions):
Inland tank barges                                      17.3   16.4
Coastal tank barges                                     6.2    3.9

      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)  Second quarter 2013 inland marine transportation revenues of
      $288,749,000 divided by 2,969,000,000 inland marine transportation ton
      miles = 9.7 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