Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net
earnings attributable to Kirby for the second quarter ended June
30, 2023 of $57.4 million or $0.95 per share, compared with
earnings of $28.5 million, or $0.47 per share for the 2022 second
quarter. Consolidated revenues for the 2023 second quarter were
$777.2 million compared with $698.0 million reported for the 2022
second quarter.
David Grzebinski, Kirby’s President and Chief
Executive Officer, commented, “Both of our segments continued to
perform well during the quarter and produced higher revenue and
operating income sequentially and year-over-year. In marine
transportation, pricing on spot and term contracts continued to
benefit from strong demand and limited availability of barges.
Favorable weather conditions and increased operating efficiency
helped improve margins for both inland and coastal. Distribution
and services delivered improved margins and business remains stable
at a high level. Overall, we had solid results and we generated
strong free cash flow which helped support an increase in our share
repurchases to $34 million for the quarter.
“In inland marine transportation, our second
quarter results reflected continued improvement in pricing together
with better weather conditions and operating efficiencies. From a
demand standpoint, customer activity was strong in the quarter with
barge utilization rates running in the low 90% range. Spot market
prices were up in the mid-single digits sequentially and in the mid
to high 20% range year-over-year. Term contract prices also renewed
up higher with low double digit increases versus a year ago.
Overall, second quarter inland revenues increased 11%
year-over-year and margins were in the high teens range.
“In coastal, market fundamentals continued to
improve with our barge utilization levels running in the mid to
high-90% range. During the quarter, we saw solid customer demand
and limited availability of large capacity vessels which resulted
in high-teens price increases year-over-year on term contract
renewals and increases on new spot deals in the high 20% range. As
mentioned on our first quarter call, our results this year are
being impacted by planned shipyard maintenance on several large
vessels. Overall, second quarter coastal revenues decreased
slightly year-over-year but operating margins were positive in the
low single digits.
“In distribution and services, demand remained
steady across our markets with continued new orders combined with
high levels of backlog. In manufacturing, revenues were up
sequentially and year-over-year driven by healthy demand for our
environmentally friendly pressure pumping equipment and power
generation equipment for e-frac. In our commercial and industrial
market, overall demand remained solid across our different
businesses, with growth coming from the marine repair, power
generation, and on-highway sectors.” Mr. Grzebinski concluded.
Segment Results – Marine
Transportation Marine transportation revenues for the 2023
second quarter were $427.0 million compared with $405.7 million for
the 2022 second quarter. Operating income for the 2023 second
quarter was $64.3 million compared with $30.8 million for the 2022
second quarter. Segment operating margin for the 2023 second
quarter was 15.0% compared with 7.6% for the 2022 second
quarter.
In the inland market, average 2023 second
quarter barge utilization was in the low 90% range, roughly flat
when compared to the 2022 second quarter. Operating conditions were
favorable with limited navigation delays contributing to a 16%
decrease in delay days year-on-year. During the quarter, average
spot market rates increased in the mid-single digits sequentially
and in the mid to-high 20% range compared to the 2022 second
quarter. Term contracts that renewed in the second quarter
increased in the low double digits on average compared to a year
ago. Revenues increased 11% compared to the 2022 second quarter
primarily due to increased pricing and volumes. The inland market
represented 82% of segment revenues in the second quarter of 2023.
Inland’s operating margin was in the high teens for the quarter and
benefited from improved navigational conditions and operating
efficiencies during the quarter.
In coastal, market conditions continued to
improve during the quarter, with barge utilization in the mid to
high-90% range. During the quarter, average spot market rates
increased in the mid-single digits sequentially and in the high 20%
range compared to the 2022 second quarter. Term contracts that
renewed in the second quarter increased in the high teens on
average compared to a year ago. Despite these improvements,
revenues in the coastal market decreased modestly when compared to
the 2022 second quarter primarily due to downtime associated with
planned shipyard maintenance days. Coastal represented 18% of
marine transportation segment revenues during the second quarter.
Coastal operating margin was positive in the low single digits as
improved pricing was partially offset by lost revenue and costs
incurred as a result of planned shipyards.
Segment Results –
Distribution and Services Distribution and
services revenues for the 2023 second quarter were $350.3 million
compared with $292.3 million for the 2022 second quarter. Operating
income for the 2023 second quarter was $29.8 million compared with
$16.7 million for the 2022 second quarter. Operating margin was
8.5% for the 2023 second quarter compared with 5.7% for the 2022
second quarter.
In the commercial and industrial market,
revenues and operating income increased compared to the 2022 second
quarter, primarily due to strong economic activity across the U.S.
which resulted in higher business levels in marine repair and
on-highway. Increased product sales in Thermo King also contributed
favorably to year-on-year growth. Overall, commercial and
industrial revenues represented approximately 52% of segment
revenues. Commercial and industrial operating margins were in the
high single digits.
In the oil and gas market, revenues and
operating income improved compared to the 2022 second quarter due
to higher oilfield activity which resulted in increased demand for
new transmissions and parts in the distribution business. Although
manufacturing was heavily impacted by supply chain delays, the
business continued to experience increased year-over-year demand
with incremental orders and deliveries of new
environmentally-friendly pressure pumping equipment and power
generation equipment for electric fracturing. Overall, oil and gas
represented approximately 48% of segment revenues. Oil and gas
operating margins were in the mid to-high single digits.
Cash Generation For the 2023
second quarter, EBITDA was $140.3 million compared with $100.2
million for the 2022 second quarter. During the quarter, net cash
provided by operating activities was $211.4 million, and capital
expenditures were $98.0 million. During the quarter, the Company
had net proceeds from asset sales totaling $12.5 million. Kirby
also used $34.4 million to repurchase stock at an average price of
$72.49. As of June 30, 2023, the Company had $36.6 million of cash
and cash equivalents on the balance sheet and $515.9 million of
liquidity available. Total debt was $998.4 million and the
debt-to-capitalization ratio improved to 24.3%.
2023 Outlook Commenting on the
outlook for the remainder of 2023, Mr. Grzebinski said, “We exited
the quarter with continued strength in our businesses. Pricing in
the marine market continues to improve and demand is strong. In
distribution and services, despite persistent supply chain
constraints and delays, demand for our products and services
continues to grow, and we continue to receive new orders in
manufacturing. Overall, we expect our businesses to deliver
improved financial results in the coming quarters. While all of
this is encouraging, we are mindful of challenges related to a
slowing global economy and additional economic headwinds due to
higher interest rates. Also, labor constraints and inflationary
pressures continue contributing to rising costs across our
businesses, although some of this is starting to moderate. Even
with these uncertainties, we remain very positive and expect to
drive strong cash flow from operations.”
In inland marine, we anticipate continued
gradual upward movement in pricing and margins in the second half
of 2023 as steady demand and a limited availability of equipment is
expected to keep the market tight. As a result, the Company expects
further pricing improvements in the spot market, which currently
represents approximately 45% of inland revenues. Term contracts are
also expected to continue to reset higher to reflect improved
market conditions and offset inflation. Overall, inland revenues
are expected to grow by low double digits on a full year basis.
Barring unexpected high cost inflation and rising fuel costs, the
Company expects operating margins to continue improving as the year
progresses and average in the high teens for the full year.
In coastal marine, revenues and operating
margins are being impacted this year by an approximate doubling of
planned shipyard maintenance days with ballast water treatment
installations on certain vessels. Kirby expects modestly improved
customer demand through the balance of the year with barge
utilization in the low to mid-90% range. Rates are expected to
continue gradually improving as the industry is getting very close
to supply and demand balance across the fleet. For the full year,
coastal revenues are expected to be flat compared to 2022. Coastal
operating margins are expected to be near break-even to low single
digits on a full year basis.
In distribution and services, favorable oilfield
fundamentals and steady demand in commercial and industrial are
expected to continue throughout 2023 and into 2024. In the oil and
gas market, despite the near-term headwinds of lower commodity
prices and flat to declining rig counts, we expect strong demand
for manufacturing as well as for OEM products, parts, and services.
Within manufacturing, the Company expects demand for
environmentally friendly pressure pumping and e-frac power
generation equipment to remain strong, with new orders and
increased deliveries of new equipment during the year. Supply chain
issues and long lead times are expected to persist in the
near-term, contributing to some volatility as deliveries of new
products shift between quarters and into 2024. In commercial and
industrial, steady markets are expected to help drive full year
revenue growth in the low double-digit percentage range, with
increased activity in power generation, marine repair, and
on-highway. Overall, the Company expects segment revenues to grow
10% to 20% on a full year basis with operating margins in the mid
to high-single digits.
Kirby expects to generate net cash provided from
operating activities of $500 million to $580 million in 2023. 2023
capital spending is expected to range between $300 to $380 million.
Approximately $240 million is associated with marine maintenance
capital and improvements to existing inland and coastal marine
equipment, including ballast water treatment systems on some
coastal vessels, and facility improvements. Up to approximately
$140 million is associated with growth capital spending in both our
businesses.
Conference Call A conference
call is scheduled for 7:30 a.m. Central Daylight Time today,
Thursday, July 27, 2023, to discuss the 2023 second quarter
performance as well as the outlook for 2023. To listen to the
webcast, please visit the Investor Relations section of Kirby’s
website at www.kirbycorp.com. For listeners who wish to
participate in the question and answer session via telephone,
please pre-register at Kirby
Earnings Call
Registration. All registrants will
receive dial-in information and a PIN allowing them to access the
live call. A slide presentation for this conference call will be
posted on Kirby’s website approximately 15 minutes before the start
of the webcast. A replay of the webcast will be available for a
period of one year by visiting the News & Events page in the
Investor Relations section of Kirby’s website.
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 includes a non-GAAP
financial measure, EBITDA, which Kirby defines as net earnings
attributable to Kirby before interest expense, taxes on income, and
depreciation and amortization. A reconciliation of EBITDA with GAAP
net earnings attributable to Kirby is included in this press
release. This press release also includes non-GAAP financial
measures which exclude certain one-time items, including earnings
before taxes on income (excluding one-time items), net earnings
attributable to Kirby (excluding one-time items), and diluted
earnings per share (excluding one-time items). A reconciliation of
these measures with GAAP is included in this press release.
Management believes the exclusion of certain one-time items from
these financial measures enables it and investors to assess and
understand operating performance, especially when comparing those
results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of Kirby’s normal operating
results. This press release additionally includes a non-GAAP
financial measure, free cash flow, which Kirby defines as net cash
provided by operating activities less capital expenditures. A
reconciliation of free cash flow with GAAP is included in this
press release. Kirby uses free cash flow to assess and forecast
cash flow and to provide additional disclosures on the Company’s
liquidity. Free cash flow does not imply the amount of residual
cash flow available for discretionary expenditures as it excludes
mandatory debt service requirements and other non-discretionary
expenditures. This press release also includes marine
transportation performance measures, consisting of ton miles,
revenue per ton mile, towboats operated and delay days. Comparable
marine transportation performance measures for the 2022 year and
quarters are available in the Investor Relations section of Kirby’s
website, www.kirbycorp.com, under Financials.
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 adverse economic conditions, industry
competition and other competitive factors, adverse weather
conditions such as high water, low water, tropical storms,
hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other
pandemics, marine accidents, lock delays, fuel costs, interest
rates, construction of new equipment by competitors, government and
environmental laws and regulations, and the timing, magnitude and
number of acquisitions made by the Company. 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, 2022.
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, on the Gulf Intracoastal
Waterway, and coastwise along all three United States coasts. Kirby
transports petrochemicals, black oil, refined petroleum products
and agricultural chemicals by tank barge. In addition, Kirby
participates in the transportation of dry-bulk commodities in
United States coastwise trade. Through the distribution and
services segment, Kirby provides after-market service and genuine
replacement parts for engines, transmissions, reduction gears,
electric motors, drives, and controls, specialized electrical
distribution and control systems, energy storage battery systems,
and related equipment used in oilfield services, marine, power
generation, on-highway, and other industrial applications. Kirby
also rents equipment including generators, industrial compressors,
high capacity lift trucks, and refrigeration trailers for use in a
variety of industrial markets. For the oil and gas market, Kirby
manufactures and remanufactures oilfield service equipment,
including pressure pumping units, and manufactures electric power
generation equipment, specialized electrical distribution and
control equipment, and high capacity energy storage/battery systems
for oilfield customers.
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(unaudited,
$ in thousands, except per share amounts) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Marine transportation |
$ |
426,962 |
|
|
$ |
405,655 |
|
|
$ |
839,457 |
|
|
$ |
761,191 |
|
Distribution and services |
|
350,286 |
|
|
|
292,309 |
|
|
|
688,235 |
|
|
|
547,555 |
|
Total revenues |
|
777,248 |
|
|
|
697,964 |
|
|
|
1,527,692 |
|
|
|
1,308,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
546,069 |
|
|
|
523,862 |
|
|
|
1,088,149 |
|
|
|
974,480 |
|
Selling, general and administrative |
|
82,896 |
|
|
|
70,575 |
|
|
|
171,745 |
|
|
|
146,340 |
|
Taxes, other than on income |
|
9,758 |
|
|
|
9,621 |
|
|
|
18,944 |
|
|
|
19,211 |
|
Depreciation and amortization |
|
51,697 |
|
|
|
50,115 |
|
|
|
102,806 |
|
|
|
100,079 |
|
Gain on disposition of assets |
|
(472 |
) |
|
|
(2,745 |
) |
|
|
(2,702 |
) |
|
|
(7,594 |
) |
Total costs and expenses |
|
689,948 |
|
|
|
651,428 |
|
|
|
1,378,942 |
|
|
|
1,232,516 |
|
Operating income |
|
87,300 |
|
|
|
46,536 |
|
|
|
148,750 |
|
|
|
76,230 |
|
Other
income |
|
1,264 |
|
|
|
3,740 |
|
|
|
7,707 |
|
|
|
8,048 |
|
Interest
expense |
|
(12,286 |
) |
|
|
(10,640 |
) |
|
|
(25,507 |
) |
|
|
(20,843 |
) |
Earnings before taxes on income |
|
76,278 |
|
|
|
39,636 |
|
|
|
130,950 |
|
|
|
63,435 |
|
Provision
for taxes on income |
|
(18,960 |
) |
|
|
(11,030 |
) |
|
|
(33,011 |
) |
|
|
(17,243 |
) |
Net earnings |
|
57,318 |
|
|
|
28,606 |
|
|
|
97,939 |
|
|
|
46,192 |
|
Net
(earnings) loss attributable to noncontrolling interests |
|
49 |
|
|
|
(149 |
) |
|
|
126 |
|
|
|
(301 |
) |
Net earnings attributable to Kirby |
$ |
57,367 |
|
|
$ |
28,457 |
|
|
$ |
98,065 |
|
|
$ |
45,891 |
|
Net earnings
per share attributable to Kirby common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.96 |
|
|
$ |
0.47 |
|
|
$ |
1.64 |
|
|
$ |
0.76 |
|
Diluted |
$ |
0.95 |
|
|
$ |
0.47 |
|
|
$ |
1.63 |
|
|
$ |
0.76 |
|
Common stock
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
59,806 |
|
|
|
60,202 |
|
|
|
59,892 |
|
|
|
60,188 |
|
Diluted |
|
60,085 |
|
|
|
60,467 |
|
|
|
60,179 |
|
|
|
60,465 |
|
CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(unaudited,
$ in thousands) |
|
EBITDA:(1) |
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Kirby |
$ |
57,367 |
|
|
$ |
28,457 |
|
|
$ |
98,065 |
|
|
$ |
45,891 |
|
Interest expense |
|
12,286 |
|
|
|
10,640 |
|
|
|
25,507 |
|
|
|
20,843 |
|
Provision for taxes on income |
|
18,960 |
|
|
|
11,030 |
|
|
|
33,011 |
|
|
|
17,243 |
|
Depreciation and amortization |
|
51,697 |
|
|
|
50,115 |
|
|
|
102,806 |
|
|
|
100,079 |
|
|
$ |
140,310 |
|
|
$ |
100,242 |
|
|
$ |
259,389 |
|
|
$ |
184,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
98,046 |
|
|
$ |
43,984 |
|
|
$ |
171,245 |
|
|
$ |
79,059 |
|
Acquisitions
of businesses |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,900 |
|
|
June 30,2023 |
|
|
December 31,2022 |
|
|
(unaudited,
$ in thousands) |
|
Cash and cash equivalents |
$ |
36,603 |
|
|
$ |
80,577 |
|
Long-term
debt, including current portion |
$ |
998,401 |
|
|
$ |
1,079,618 |
|
Total
equity |
$ |
3,112,809 |
|
|
$ |
3,045,168 |
|
Debt to
capitalization ratio |
|
24.3 |
% |
|
|
26.2 |
% |
MARINE TRANSPORTATION STATEMENTS OF
EARNINGS
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(unaudited,
$ in thousands) |
|
Marine transportation revenues |
$ |
426,962 |
|
|
$ |
405,655 |
|
|
$ |
839,457 |
|
|
$ |
761,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
275,618 |
|
|
|
294,343 |
|
|
|
557,641 |
|
|
|
548,702 |
|
Selling, general and administrative |
|
33,605 |
|
|
|
28,294 |
|
|
|
68,592 |
|
|
|
60,630 |
|
Taxes, other than on income |
|
7,962 |
|
|
|
7,990 |
|
|
|
15,269 |
|
|
|
15,810 |
|
Depreciation and amortization |
|
45,526 |
|
|
|
44,211 |
|
|
|
90,668 |
|
|
|
88,297 |
|
Total costs and expenses |
|
362,711 |
|
|
|
374,838 |
|
|
|
732,170 |
|
|
|
713,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
64,251 |
|
|
$ |
30,817 |
|
|
$ |
107,287 |
|
|
$ |
47,752 |
|
Operating
margin |
|
15.0 |
% |
|
|
7.6 |
% |
|
|
12.8 |
% |
|
|
6.3 |
% |
DISTRIBUTION AND SERVICES STATEMENTS OF
EARNINGS
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(unaudited,
$ in thousands) |
|
Distribution and services revenues |
$ |
350,286 |
|
|
$ |
292,309 |
|
|
$ |
688,235 |
|
|
$ |
547,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
268,657 |
|
|
|
229,196 |
|
|
|
528,521 |
|
|
|
425,715 |
|
Selling, general and administrative |
|
45,686 |
|
|
|
40,653 |
|
|
|
94,883 |
|
|
|
82,575 |
|
Taxes, other than on income |
|
1,707 |
|
|
|
1,590 |
|
|
|
3,558 |
|
|
|
3,318 |
|
Depreciation and amortization |
|
4,394 |
|
|
|
4,133 |
|
|
|
8,639 |
|
|
|
8,239 |
|
Total costs and expenses |
|
320,444 |
|
|
|
275,572 |
|
|
|
635,601 |
|
|
|
519,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
29,842 |
|
|
$ |
16,737 |
|
|
$ |
52,634 |
|
|
$ |
27,708 |
|
Operating
margin |
|
8.5 |
% |
|
|
5.7 |
% |
|
|
7.6 |
% |
|
|
5.1 |
% |
OTHER COSTS AND EXPENSES
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(unaudited,
$ in thousands) |
|
General corporate expenses |
$ |
7,265 |
|
|
$ |
3,763 |
|
|
$ |
13,873 |
|
|
$ |
6,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
disposition of assets |
$ |
(472 |
) |
|
$ |
(2,745 |
) |
|
$ |
(2,702 |
) |
|
$ |
(7,594 |
) |
ONE-TIME CHARGES
The 2023 and 2022 first six months GAAP results
include certain one-time charges. The following is a reconciliation
of GAAP earnings to non-GAAP earnings, excluding the one-time
items, for earnings before tax (pre-tax), net earnings attributable
to Kirby (after-tax), and diluted earnings per share (per
share):
|
Second Quarter 2023 |
|
|
First Six Months 2023 |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
(unaudited,
$ in millions except per share amounts) |
|
GAAP earnings |
$ |
76.3 |
|
|
$ |
57.4 |
|
|
$ |
0.95 |
|
|
$ |
131.0 |
|
|
$ |
98.1 |
|
|
$ |
1.63 |
|
Costs
related to strategic review and shareholder engagement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.0 |
|
|
|
2.4 |
|
|
|
0.04 |
|
IRS refund
interest income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.7 |
) |
|
|
(2.2 |
) |
|
|
(0.04 |
) |
Earnings,
excluding one-time items(2) |
$ |
76.3 |
|
|
$ |
57.4 |
|
|
$ |
0.95 |
|
|
$ |
131.3 |
|
|
$ |
98.3 |
|
|
$ |
1.63 |
|
|
Second Quarter 2022 |
|
|
First Six Months 2022 |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
(unaudited,
$ in millions except per share amounts) |
|
GAAP earnings |
$ |
39.6 |
|
|
$ |
28.5 |
|
|
$ |
0.47 |
|
|
$ |
63.4 |
|
|
$ |
45.9 |
|
|
$ |
0.76 |
|
Severance
expense |
|
1.5 |
|
|
|
1.3 |
|
|
|
0.02 |
|
|
|
1.5 |
|
|
|
1.3 |
|
|
|
0.02 |
|
Earnings,
excluding one-time items(2) |
$ |
41.1 |
|
|
$ |
29.8 |
|
|
$ |
0.49 |
|
|
$ |
64.9 |
|
|
$ |
47.2 |
|
|
$ |
0.78 |
|
RECONCILIATION OF FREE CASH
FLOW
The following is a reconciliation of GAAP net
cash provided by operating activities to non-GAAP free cash
flow(2):
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022(3) |
|
|
2023 |
|
|
2022(3) |
|
|
(unaudited,
$ in millions) |
|
Net cash provided by operating activities |
$ |
211.4 |
|
|
$ |
63.4 |
|
|
$ |
227.9 |
|
|
$ |
95.6 |
|
Less:
Capital expenditures |
|
(98.0 |
) |
|
|
(44.0 |
) |
|
|
(171.2 |
) |
|
|
(79.1 |
) |
Free cash
flow(2) |
$ |
113.4 |
|
|
$ |
19.4 |
|
|
$ |
56.7 |
|
|
$ |
16.5 |
|
MARINE TRANSPORTATION PERFORMANCE
MEASUREMENTS
|
Second Quarter |
|
|
Six Months |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Inland
Performance Measurements: |
|
|
|
|
|
|
|
|
|
|
|
Ton Miles (in millions)(4) |
|
3,500 |
|
|
|
3,536 |
|
|
|
6,940 |
|
|
|
6,704 |
|
Revenue/Ton Mile (cents/tm)(5) |
|
10.1 |
|
|
|
9.0 |
|
|
|
9.9 |
|
|
|
8.9 |
|
Towboats operated (average)(6) |
|
281 |
|
|
|
270 |
|
|
|
282 |
|
|
|
267 |
|
Delay Days(7) |
|
2,317 |
|
|
|
2,762 |
|
|
|
6,442 |
|
|
|
5,899 |
|
Average cost per gallon of fuel consumed |
$ |
2.87 |
|
|
$ |
3.98 |
|
|
$ |
3.09 |
|
|
$ |
3.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barges
(active): |
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
1,045 |
|
|
|
1,034 |
|
Coastal tank barges |
|
|
|
|
|
|
|
29 |
|
|
|
30 |
|
Offshore dry-cargo barges |
|
|
|
|
|
|
|
4 |
|
|
|
4 |
|
Barrel
capacities (in millions): |
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
23.3 |
|
|
|
23.0 |
|
Coastal tank barges |
|
|
|
|
|
|
|
3.0 |
|
|
|
3.1 |
|
(1) |
|
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, and depreciation and
amortization. EBITDA is presented because of its wide acceptance as
a financial indicator. EBITDA is one of the performance measures
used in calculating performance compensation pursuant to Kirby’s
annual incentive 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. |
(2) |
|
Kirby
uses certain non-GAAP financial measures to review performance
excluding certain one-time items including: earnings before taxes
on income, excluding one-time items; net earnings attributable to
Kirby, excluding one-time items; and diluted earnings per share,
excluding one-time items. Management believes the exclusion of
certain one-time items from these financial measures enables it and
investors to assess and understand operating performance,
especially when comparing those results with previous and
subsequent periods or forecasting performance for future periods,
primarily because management views the excluded items to be outside
of the company's normal operating results. Kirby also uses free
cash flow, which is defined as net cash provided by operating
activities less capital expenditures, to assess and forecast cash
flow and to provide additional disclosures on the Company’s
liquidity. Free cash flow does not imply the amount of residual
cash flow available for discretionary expenditures as it excludes
mandatory debt service requirements and other non-discretionary
expenditures. These non-GAAP financial measures are not
calculations 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. |
(3) |
|
See
Kirby’s annual report on Form 10-K for the year ended December 31,
2022 and its quarterly report on Form 10-Q for the quarter ended
June 30, 2022 for amounts provided by (used in) investing and
financing activities. |
(4) |
|
Ton miles
indicate fleet productivity by measuring the distance (in 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. |
(5) |
|
Inland
marine transportation revenues divided by ton miles. Example:
Second quarter 2023 inland marine transportation revenues of $351.8
million divided by 3,500 million inland marine transportation ton
miles = 10.1 cents. |
(6) |
|
Towboats
operated are the average number of owned and chartered towboats
operated during the period. |
(7) |
|
Delay
days measures the lost time incurred by a tow (towboat and one or
more tank barges) during transit. The measure includes transit
delays caused by weather, lock congestion and other navigational
factors. |
Contact: Kurt Niemietz713-435-1077
Kirby (NYSE:KEX)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Kirby (NYSE:KEX)
Gráfica de Acción Histórica
De May 2023 a May 2024