Kirby Corporation Announces Record 2013 Fourth Quarter And Year Results

   Kirby Corporation Announces Record 2013 Fourth Quarter And Year Results

- 2013 fourth quarter earnings per share were $1.13 compared with $1.03 earned
in the 2012 fourth quarter which included a $.09 per share earnout credit

- 2013 year earnings per share were $4.44 compared with $3.73 for 2012

- 2014 first quarter earnings per share guidance is $1.05 to $1.15 compared
with $1.00 earned in the 2013 first quarter

- 2014 year earnings per share guidance is $4.75 to $4.95 compared with $4.44
earned in 2013

PR Newswire

HOUSTON, Jan. 29, 2014

HOUSTON, Jan. 29, 2014 /PRNewswire/ --Kirby Corporation ("Kirby") (NYSE:KEX)
today announced record net earnings attributable to Kirby for the fourth
quarter ended December 31, 2013 of $64.3 million, or $1.13 per share, compared
with $57.9 million, or $1.03 per share, for the 2012 fourth quarter.
Consolidated revenues for the 2013 fourth quarter were $568.4 million compared
with $512.6 million reported for the 2012 fourth quarter.

Kirby reported record-setting net earnings attributable to Kirby for the 2013
year of $253.1 million, or $4.44 per share, compared with $209.4 million, or
$3.73 per share, for 2012. Consolidated revenues for 2013 were $2.24 billion
compared with $2.11 billion for 2012.

The 2013 and 2012 year results included credits reducing the fair-value of the
contingent earnout liability associated with the acquisition of United
Holdings LLC ("United") in April 2011. The 2013 year included a credit of
$18.3 million before taxes, or $.20 per share, and the 2012 year a credit of
$4.2 million before taxes, or $.05 per share. The 2013 fourth quarter
results did not include any credit as the liability was eliminated as of
September 30, 2013, while the 2012 fourth quarter results included a credit of
$8.2 million before taxes, or $.09 per share.

Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "Our inland
and coastal tank barge fleets continued to maintain high equipment utilization
levels and favorable pricing trends during the fourth quarter, but our results
were somewhat affected by high delay days associated with winter weather
conditions. Our land-based diesel engine services business remained
challenged as excess pressure pumping horsepower continued to impact that
market. We do anticipate some improvement in the land-based market later in
2014."

Segment Results – Marine Transportation
Marine transportation revenues for the 2013 fourth quarter were $434.6 million
compared with $381.0 million for the 2012 fourth quarter. Operating income
for the 2013 fourth quarter was $107.8 million compared with $89.8 million for
the 2012 fourth quarter.

The inland marine transportation petrochemical, black oil and refined products
markets remained consistently strong during the 2013 fourth quarter, in the
90% to 95% equipment utilization range, with favorable pricing trends. Inland
operations were negatively impacted by winter weather conditions during
November and December that resulted in increased delay days compared with the
2013 third quarter and 2012 fourth quarter. 

The coastal marine transportation markets reflected continued strong equipment
utilization in the 90% range with favorable short-term and long-term contract
renewals and higher spot contract pricing. Demand remained firm for the
regional distribution of refined products, crude oil and gas condensate, and
the movement of petrochemicals. Progress continued in expanding the coastal
customer base to inland customers with coastal requirements. The coastal
operations were negatively impacted by market seasonality and winter weather
conditions during November and December.

The marine transportation operating margin for the 2013 fourth quarter was
24.8% compared with 23.6% for the 2012 fourth quarter.

Segment Results – Diesel Engine Services
Diesel engine services revenues for the 2013 fourth quarter were $133.8
million compared with $131.6 million for the 2012 fourth quarter. Operating
income for the 2013 fourth quarter was $4.7 million compared with 2012 fourth
quarter operating income of $13.1 million that included an $8.2 million credit
to the United contingent earnout liability.

The results reflected a continuation of a challenging land-based diesel engine
services market, while the marine and power generation markets remained
consistent with prior 2013 quarters. The manufacturing of oil service
equipment, including pressure pumping units, and sales and service of
land-based engines, transmissions and parts remained weak, but did reflect
signs of improvement in each market late in the quarter. The market for the
remanufacturing of older pressure pumping units remained stable. The marine
diesel engine services market continued to benefit from major service projects
for inland and coastal customers. The power generation market benefited from
generator set upgrades and parts sales for both domestic and international
customers.

The diesel engine services operating margin was 3.5% for the 2013 fourth
quarter compared with 10.0% for the 2012 fourth quarter, which included the
positive impact of the $8.2 million credit to the contingent earnout
liability.

Cash Generation
Cash flow remained strong during 2013 with EBITDA of $597.7 million compared
with $506.9 million for 2012. The cash flow was used in part to fund capital
expenditures of $253.2 million, including $147.8 million for new inland tank
barge and towboat construction and progress payments on the construction of
two offshore dry-bulk barge units completed during the 2013 second quarter,
and $105.4 million primarily for upgrades to existing inland and coastal
marine equipment and facilities, and diesel engine services facilities. Total
debt as of December 31, 2013 was $749.2 million and the debt-to-capitalization
ratio was 27.0%, a significant decrease from total debt as of December 31,
2012 of $1.14 billion and debt-to-capitalization of 39.9%.

Outlook
Commenting on the 2014 first quarter and full year market outlook and
guidance, Mr. Pyne said, "Our earnings per share guidance for 2014 is $4.75 to
$4.95 compared with $4.44 for 2013 that included a $.20 per share credit to
the United contingent earnout liability. Our 2014 guidance assumes continued
strong demand across all marine transportation markets with equipment
utilization levels remaining in the 90% to 95% range with continued favorable
pricing trends. For our diesel engine services segment, we anticipate
improvement in our land-based market as the year progresses, and that our
marine and power generation markets will remain consistent with 2013. At the
present time, we believe the major factors between our high and low end 2014
guidance are our coastal marine transportation market, its equipment
utilization levels and pricing trends, and the timing of the improvement
during 2014 in our land-based diesel engine services market."

Regarding the 2014 first quarter guidance, Mr. Pyne stated, "Our 2014 first
quarter earnings per share guidance is $1.05 to $1.15 compared with $1.00
reported for the 2013 first quarter that included a $.05 per share credit to
the United contingent earnout liability. We anticipate continued strong
inland and coastal equipment utilization with favorable pricing trends. Our
guidance factors in normal winter weather conditions for both our inland and
coastal transportation markets, and no recovery in our land-based diesel
engine services market."

Mr. Pyne continued, "Our 2014 capital spending guidance is currently in the
$200 to $210 million range, including approximately $45 million for the
construction of 37 inland tank barges and $45 million in progress payments on
the construction of an 185,000 barrel coastal articulated tank barge and
tugboat unit scheduled to be placed in service in mid-to-late 2015. The
balance of $110 to $120 million is primarily capital upgrades and improvements
to existing inland and coastal marine equipment and facilities, and diesel
engine services facilities."

Conference Call
A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
January 30, 2014, to discuss the 2013 fourth quarter and year performance, as
well as the outlook for the 2014 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
36351251. An audio playback will be available at 1:00 p.m. central time on
Thursday, January 30, through 5:00 p.m. central time on Friday, February 28,
2014 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, black oil, 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 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
                       Fourth Quarter             Year
                       2013        2012           2013          2012
                       (unaudited, $ in thousands except per share amounts)
Revenues:
 Marine            $  434,600 $   380,970  $  1,713,167 $  1,408,893
transportation
 Diesel engine     133,797     131,581        529,028       703,765
services
                       568,397     512,551        2,242,195     2,112,658
Costs and expenses:
 Costs of sales    365,548     334,397        1,448,805     1,409,662
and operating expenses
 Selling, general  49,431      37,711         177,766       178,483
and administrative
 Taxes, other than 3,304       3,243          15,893        14,519
on income
 Depreciation and  41,530      37,747         164,437       145,147
amortization
 Loss (gain) on    (160)       15             (888)         14
disposition of assets
                       459,653     413,113        1,806,013     1,747,825
 Operating income   108,744     99,438         436,182       364,833
Other income (expense) 132         (45)           368           78
Interest expense       (5,971)     (6,588)        (27,872)      (24,385)
 Earnings before   102,905     92,805         408,678       340,526
taxes on income
Provision for taxes on (37,646)    (34,231)       (152,379)     (127,907)
income
 Net earnings      65,259      58,574         256,299       212,619
Less: Net earnings
attributable to        (992)       (686)          (3,238)       (3,181)
noncontrolling
interests
 Net earnings      $  64,267 $   57,888  $          $   209,438
attributable to Kirby                             253,061
Net earnings per share
attributable to Kirby
common stockholders: 
 Basic             $        $          $       $     
                       1.13       1.03          4.46          3.75
 Diluted           $        $          $       $     
                       1.13       1.03          4.44          3.73
Common stock
outstanding (in
thousands):
 Basic             56,429      55,615         56,354        55,466
 Diluted           56,646      55,795         56,552        55,674
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                       Fourth Quarter             Year
                       2013        2012           2013          2012
                       (unaudited, $ in thousands)
EBITDA:^(1)
 Net earnings      $         $    57,888 $   253,061 $  209,438
attributable to Kirby  64,267
 Interest expense  5,971       6,588          27,872        24,385
 Provision for     37,646      34,231         152,379       127,907
taxes on income
 Depreciation and  41,530      37,747         164,437       145,147
amortization
                       $ 149,414  $   136,454  $   597,749 $  506,877
Capital expenditures   $  46,180 $    56,280 $   253,227 $  312,167
                                                  December 31,
                                                  2013          2012
                                                  (unaudited, $ in thousands)
Long-term debt, including current portion         $   749,150 $ 1,135,110
Total equity                                      $ 2,022,153  $ 1,707,054
Debt to capitalization ratio  27.0%         39.9%



MARINE TRANSPORTATION STATEMENTS OF EARNINGS
                       Fourth Quarter            Year
                       2013         2012         2013          2012
                       (unaudited, $ in thousands)
Marine transportation  $  434,600  $  380,970 $ 1,713,167   $ 1,408,893
revenues
Costs and expenses:
 Costs of sales    257,386      226,502      1,029,040     848,540
and operating expenses
 Selling, general  28,725       27,770       112,272       105,934
and administrative
 Taxes, other than 2,847        2,930        14,026        12,807
on income
 Depreciation and  37,850       33,928       149,574       129,857
amortization
                       326,808      291,130      1,304,912     1,097,138
 Operating     $  107,792  $   89,840 $ 408,255    $ 311,755
income
 Operating     24.8%        23.6%        23.8%         22.1%
margins
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
                       Fourth Quarter            Year
                       2013         2012         2013          2012
                       (unaudited, $ in thousands)
Diesel engine services $  133,797  $  131,581  $  529,028   $  703,765
revenues
Costs and expenses:
 Costs of sales    108,162      107,895      419,765       561,122
and operating expenses
 Selling, general  17,691       7,426        53,595        62,560
and administrative
 Taxes, other than 444          302          1,805         1,667
income
 Depreciation and  2,764        2,847        11,096        12,030
amortization
                       129,061      118,470      486,261       637,379
 Operating     $   4,736 $  13,111  $   42,767  $   66,386
income
 Operating     3.5%         10.0%        8.1%          9.4%
margins
OTHER COSTS AND EXPENSES
                       Fourth Quarter            Year
                       2013         2012         2013          2012
                       (unaudited, $ in thousands)
General corporate      $   3,944 $   3,498 $   15,728 $   13,294
expenses
Loss (gain) on         $         $       $         $      
disposition of assets  (160)       15           (888)        14



^

MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
                                             Fourth Quarter Year
                                             2013    2012   2013   2012
Inland Performance Measurements:
 Ton Miles (in millions)^(2)              2,869   2,957  11,754 12,224
 Revenue/Ton Mile (cents/tm)^(3)          10.0    9.5    9.8    8.9
 Towboats operated (average)^(4)          253     253    256    245
 Delay Days^(5)                           1,985   1,479  7,843  6,358
 Average cost per gallon of fuel consumed $ 3.26  $ 3.37 $ 3.21 $ 3.24
Barges (active):
 Inland tank barges                                      861    841
 Coastal tank barges                                     72     81
 Offshore dry-cargo barges                               8      8
Barrel capacities (in millions):
 Inland tank barges                                      17.3   16.7
 Coastal tank barges                                     6.0    6.3



       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) Fourth quarter 2013 inland marine transportation revenues of
       $288,214,000 divided by 2,869,000,000 inland marine transportation ton
       miles = 10.0 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
 
Press spacebar to pause and continue. Press esc to stop.