Kirby Corporation Announces Record 2014 First Quarter Results

        Kirby Corporation Announces Record 2014 First Quarter Results

- 2014 first quarter earnings per share were a record $1.09 compared to $1.00
in the 2013 first quarter

- 2014 first quarter earnings included a $0.03 per share severance charge and
an estimated $0.03 per share combined impact from winter weather and expenses
related to the March 22nd incident in the Houston Ship Channel

- 2013 first quarter results included a $0.05 per share benefit due to the
reduction of the United earnout liability

- David Grzebinski elected as Kirby's Chief Executive Officer

- Board of Directors approved the construction of three coastal articulated
tank barge and tugboat units

- 2014 second quarter earnings per share guidance is $1.25 to $1.35 and full
year earnings per share guidance increased to $4.80 to $5.00

PR Newswire

HOUSTON, April 30, 2014

HOUSTON, April 30, 2014 /PRNewswire/ --Kirby Corporation ("Kirby") (NYSE:
KEX) today announced record net earnings attributable to Kirby for the first
quarter ended March 31, 2014 of $62.2 million, or $1.09 per share, compared
with $56.6 million, or $1.00 per share, for the 2013 first quarter.
Consolidated revenues for the 2014 first quarter were $589.2 million compared
with $558.8 million reported for the 2013 first quarter.

Kirby's 2014 first quarter results included a $0.03 per share severance charge
and an estimated $0.03 per share combined impact from delays related to winter
weather and the costs associated with a collision of a Kirby vessel in the
Houston Ship Channel. The 2013 first quarter results included a $0.05 per
share benefit for the reduction of the fair value of the contingent earnout
liability associated with the acquisition of United Holdings LLC ("United") in
April 2011.

On April 29, 2014, the Board of Directors elected David Grzebinski as Kirby's
Chief Executive Officer, replacing Joe Pyne. Mr. Pyne will continue to serve
as Kirby's Executive Chairman. Mr. Pyne commented, "It has been my distinct
pleasure to serve Kirby as its CEO since 1995. In keeping with the succession
plan we announced in April of last year, at our board meeting yesterday David
Grzebinski was named President and Chief Executive Officer. David is an
excellent choice to lead this company to its next level during a very exciting
time for the industry. I look forward to working with David and his team as
Kirby's Executive Chairman."

David Grzebinski, Kirby's President and Chief Executive Officer, commented,
"Despite the challenges in the quarter, we were pleased with our first quarter
results. Our marine markets continued to benefit from healthy levels of
demand and high utilization which drove ongoing pricing improvement. The first
quarter also reflected some improvement in our land-based diesel engine
services market. We expect this market to continue to improve throughout the
year."

Segment Results – Marine Transportation
Marine transportation revenues for the 2014 first quarter were $435.8 million
compared with $418.5 million for the 2013 first quarter. Operating income for
the 2014 first quarter was $97.6 million compared with $89.3 million for the
2013 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. Heavy ice conditions on the Illinois,
upper Mississippi, and upper Ohio Rivers persisted throughout the quarter. In
addition, the quarter was affected by winter frontal systems which brought
heavy winds and fog to the Gulf Coast. Both the heavy ice conditions and
frontal systems contributed to a 41% year over year increase in delay days.

Coastal marine transportation tank barge utilization was also in the 90% to
95% range, a modest improvement from the 2013 first quarter. In addition to a
seasonal decline related to the cessation of winter operations in Alaska,
weather impacted coastal operations along the East Coast throughout the first
quarter. However, the cold weather in the Northeast contributed to strong
heating oil demand. Overall, coastal marine transportation utilization levels
continue to support higher term and spot contract pricing. 

The marine transportation segment's 2014 first quarter operating margin was
22.4% compared with 21.3% for the first quarter of 2013.

Segment Results – Diesel Engine Services
Diesel engine services revenues for the 2014 first quarter were $153.5 million
compared with $140.3 million for the 2013 first quarter, and operating income
was $12.8 million. This compares with operating income of $14.0 million for
the 2013 first quarter which included a $4.3 million benefit resulting from
the reduction of the fair value of the United contingent earnout liability.

The higher revenue and higher operating income, when excluding changes to the
earnout, reflected modest improvement in the marine, power generation, and
land-based diesel engine markets. The land-based market benefited primarily
from an improvement in the sale and service of engines and transmissions. In
addition, a small number of new pressure pumping units were sold in the
quarter and there was modest improvement in demand for the remanufacturing of
pressure pumping units towards the end of the quarter.

During the 2014 first quarter, demand in the marine diesel engine services
market remained stable, benefiting from major service projects for Gulf Coast,
East Coast and Midwest customers. 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 8.3% for the 2014 first
quarter compared with 10.0% for the 2013 first quarter, which included a $4.3
million benefit related to the contingent earnout liability.

Cash Generation
Kirby continued to generate strong cash flow during the 2014 first quarter
with EBITDA of $146.9 million compared with $139.9 million for the 2013 first
quarter. The cash flow was used in part to fund capital expenditures of $62.3
million, including $31.7 million for new inland tank barge construction, $7.4
million for progress payments on the construction of a new offshore
articulated tank barge and tugboat unit, and $23.2 million primarily for
upgrades to the existing inland and coastal fleets. Total debt as of March
31, 2014 was $708.0 million and Kirby's debt-to-capitalization ratio was
25.3%.

Outlook
Commenting on the 2014 second quarter and full year market outlook and
guidance, Mr. Grzebinski said, "Our earnings guidance for the 2014 second
quarter is $1.25 to $1.35 per share compared with $1.11 per share earned in
the 2013 second quarter, which included a $0.07 per share United earnout
benefit. We are raising our full year 2014 guidance to $4.80 to $5.00
compared with $4.44 per share for the 2013 year, which included a $0.20 per
share United earnout benefit. Our second quarter guidance assumes normal
seasonal operating conditions in both our inland and coastal marine
transportation markets. Utilization in both our inland and coastal fleets is
projected to remain in the 90% to 95% range, leading to continued favorable
term and spot contract pricing. For our diesel engine services segment, we
expect continued modest improvement in the land-based market. We also
continue to believe that a more meaningful improvement is likely to occur in
late 2014 or early 2015. For the marine and power generation sectors, we
anticipate continued stable markets."

Mr. Grzebinski continued, "As a result of consistently strong coastal tank
barge demand, utilization and increasing pricing, yesterday we exercised our
option for the construction of a second 185,000 barrel coastal articulated
tank barge and 10000 horsepower tugboat unit ("ATB") for approximately $75
million, with expected delivery in the first half of 2016. Including progress
payments for this unit and previously announced increases in our inland
construction program, we now expect our 2014 capital spending to be in the
$320 to $330 million range. Also, yesterday our Board of Directors approved
the construction of two additional ATB's and we will update our capital
spending guidance once we have construction contracts signed."

The new 2014 capital spending guidance range of $320 to $330 million includes
approximately $135 million for the construction of 66 inland tank barges and
one inland towboat, and approximately $80 million in progress payments on the
construction of the two 185,000 barrel ATB's. The balance of $105 to $115
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,
May 1, 2014, to discuss the 2014 first quarter performance as well as the
outlook for the 2014 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 37075007. An
audio playback will be available at 1:00 p.m. central time on Thursday, May 1,
through 5:00 p.m. central time on Friday, May 30, 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 2013 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, 2013 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
                                   __  First
                                   Quarter__
                                   2014                   2013
                                   (unaudited, $ in thousands except

                                   per share amounts)
Revenues:
 Marine transportation         $   435,771          $   418,518
 Diesel engine services        153,475                140,267
                                   589,246                558,785
Costs and expenses:
 Costs of sales and operating  383,229                369,274
expenses
 Selling, general and          53,598                 44,156
administrative
 Taxes, other than on income   4,580                  4,478
 Depreciation and amortization 41,036                 40,996
 Loss (gain) on disposition of (51)                   32
assets
                                   482,392                458,936
 Operating income               106,854                99,849
Other income (expense)             (236)                  75
Interest expense                   (5,618)                (7,988)
 Earnings before taxes on       101,000                91,936
income
Provision for taxes on income      (37,989)               (34,384)
 Net earnings                  63,011                 57,552
Less: Net earnings attributable   (765)                  (974)
to noncontrolling interests
 Net earnings attributable to   $   62,246          $   56,578
Kirby
Net earnings per share
attributable to Kirby common
stockholders:
 Basic                         $     1.09         $     1.00
 Diluted                       $     1.09         $     1.00
Common stock outstanding (in
thousands):
 Basic                         56,565                 56,268
 Diluted
                                   56,781                 56,455

CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                                    _ First
                                   Quarter
                                   2014                   2013
                                   (unaudited, $ in thousands)
EBITDA:^(1)
 Net earnings attributable to  $    62,246         $    56,578
Kirby
 Interest expense              5,618                  7,988
 Provision for taxes on income 37,989                 34,384
 Depreciation and amortization 41,036                 40,996
                                   $   146,889          $   139,946
Capital expenditures               $    62,257         $    71,157
                                    __ March
                                   31,
                                   2014                   2013
                                   (unaudited, $ in thousands)
Long-term debt, including current  $   708,000          $ 1,103,460
portion
Total equity                       $ 2,090,911           $ 1,769,440
Debt to capitalization ratio       25.3%                  38.4%
MARINE TRANSPORTATION STATEMENTS OF EARNINGS
                                    __ First
                                   Quarter
                                   2014                   2013
                                   (unaudited, $ in thousands)
Marine transportation revenues     $   435,771          $   418,518
Costs and expenses:
 Costs of sales and operating  264,426                259,229
expenses
 Selling, general and          32,427                 28,976
administrative
 Taxes, other than on income   4,081                  3,910
 Depreciation and amortization 37,286                 37,150
                                   338,220                329,265
 Operating income          $   97,551          $   89,253
 Operating margins         22.4 %                 21.3 %
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
                                   __  First
                                   Quarter
                                   2014                   2013
                                   (unaudited, $ in thousands)
Diesel engine services revenues    $   153,475          $   140,267
Costs and expenses:
 Costs of sales and operating  118,803                110,045
expenses
 Selling, general and          18,575                 12,765
administrative
 Taxes, other than on income   484                    552
 Depreciation and amortization 2,841                  2,883
                                   140,703                126,245
 Operating income          $   12,772          $   14,022
 Operating margins         8.3 %                  10.0 %
OTHER COSTS AND EXPENSES
                                     First Quarter
                                   2014                   2013
                                   (unaudited, $ in thousands)
General corporate expenses         $     3,520        $    3,394
Loss (gain) on disposition of      $      (51)      $       32
assets



MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
                                     First Quarter
                                   2014                  2013
Inland Performance Measurements:
 Ton Miles (in millions)^(2)   2,990                 3,012
 Revenue/Ton Mile              9.6                   9.3
(cents/tm)^(3)
 Towboats operated             255                   256
(average)^(4)
 Delay Days^(5)                2,897                 2,049
 Average cost per gallon of    $     3.13       $     3.25
fuel consumed
Barges (active):
 Inland tank barges            878                   844
 Coastal tank barges           72                    82
 Offshore dry-cargo barges     8                     7
Barrel Capacities (in millions):
 Inland tank barges            17.4                  16.9
 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 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) First quarter 2014 inland marine transportation revenues of $287,845,000
     divided by 2,990,000,000 marine transportation ton miles = 9.6 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: Sterling Adlakha, 713-435-1101
 
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