Welcome!

News Feed Item

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

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 transportation

$   434,600

$     380,970

$   1,713,167

$    1,408,893

     Diesel engine services

133,797

131,581

529,028

703,765


568,397

512,551

2,242,195

2,112,658

Costs and expenses:





     Costs of sales and operating expenses

365,548

334,397

1,448,805

1,409,662

     Selling, general and administrative

49,431

37,711

177,766

178,483

     Taxes, other than on income

3,304

3,243

15,893

14,519

     Depreciation and amortization

41,530

37,747

164,437

145,147

     Loss (gain) on disposition of assets

(160)

15

(888)

14


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 taxes on income

102,905

92,805

408,678

340,526

Provision for taxes on income

(37,646)

(34,231)

(152,379)

(127,907)

     Net earnings

65,259

58,574

256,299

212,619

Less: Net earnings attributable to noncontrolling interests

(992)

(686)

(3,238)

(3,181)






     Net earnings attributable to Kirby

$    64,267

$      57,888

$       253,061

$     209,438






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 attributable to Kirby

$     64,267

$       57,888

$     253,061

$   209,438

     Interest expense

5,971

6,588

27,872

24,385

     Provision for taxes on income

37,646

34,231

152,379

127,907

     Depreciation and amortization

41,530

37,747

164,437

145,147


$  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 revenues

$   434,600

$    380,970

$ 1,713,167

$ 1,408,893






Costs and expenses:





     Costs of sales and operating expenses

257,386

226,502

1,029,040

848,540

     Selling, general and administrative

28,725

27,770

112,272

105,934

     Taxes, other than on income

2,847

2,930

14,026

12,807

     Depreciation and amortization

37,850

33,928

149,574

129,857


326,808

291,130

1,304,912

1,097,138






         Operating income

$   107,792

$     89,840

$  408,255

$  311,755






         Operating margins

24.8%

23.6%

23.8%

22.1%











DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS





Fourth Quarter

Year


2013

2012

2013

2012


(unaudited, $ in thousands)






Diesel engine services revenues

$   133,797

$   131,581

$   529,028

$   703,765






Costs and expenses:





     Costs of sales and operating expenses

108,162

107,895

419,765

561,122

     Selling, general and administrative

17,691

7,426

53,595

62,560

     Taxes, other than income

444

302

1,805

1,667

     Depreciation and amortization

2,764

2,847

11,096

12,030


129,061

118,470

486,261

637,379






         Operating income

$      4,736

$    13,111

$     42,767

$     66,386






         Operating margins

3.5%

10.0%

8.1%

9.4%


OTHER COSTS AND EXPENSES





Fourth Quarter

Year


2013

2012

2013

2012


(unaudited, $ in thousands)





General corporate expenses

$      3,944

$      3,498

$      15,728

$      13,294





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

 

(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, 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 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)  

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.

(3)  

Inland marine transportation revenues divided by ton miles.  Example:  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.

(5)  

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.

SOURCE Kirby Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...