Kirby Corporation Announces 2023 Fourth Quarter and Full Year Results
- Strong 2023 financial performance with significant year-over-year growth in revenues and earnings
- Sequential increase in spot market prices and high-teens operating margins for inland marine
- Distribution and services revenue up sequentially and year-over-year despite supply chain delays
- Repurchase of over 2 million shares in 2023
- 2024 expected earnings growth of 30% to 40% year-over-year
- Projected cash flow from operations of $600 million to $700 million in 2024
- None.
Insights
The reported earnings per share (EPS) of $1.04 for Q4 and $3.72 for the full year reflect a robust financial performance for Kirby Corporation, indicating a strong year-over-year growth. The increase in spot market prices and operating margins in the inland marine sector, alongside the sequential and year-over-year revenue growth in distribution and services, suggests a positive trajectory for Kirby's business segments. The share repurchase program, with 673,279 shares bought back in Q4 and 1,485,159 shares for the full year, signifies management's confidence in the company's valuation and a commitment to shareholder value.
The projected earnings growth of 30% to 40% for 2024 and the expected cash flow of $600 million to $700 million provide a bullish outlook for the company's future financial health. However, investors should consider the potential risks associated with macroeconomic factors such as a possible recession or persistent inflation that could affect the lower end of the earnings growth forecast.
The debt-to-capitalization ratio improvement to 24.2% and the reduction in total debt by $63.0 million reflect prudent financial management and an enhanced balance sheet, which could be attractive to investors seeking companies with solid financial stability.
The marine transportation sector, particularly the inland marine market, is experiencing strong demand and high barge utilization rates, with spot market prices seeing a significant increase. This is indicative of a favorable market environment for Kirby, which is a leading operator in this space. The increase in delay days, however, highlights operational challenges that could impact future margins if not mitigated.
The coastal marine business also reports a positive trend with consistent customer demand and improved pricing, although it represents a smaller portion of the segment revenues. The positive performance in both inland and coastal marine transportation is crucial, as these markets are sensitive to economic cycles and commodity flows, which can influence investor sentiment towards the stock.
In the distribution and services segment, the increase in revenues and operating income, despite supply chain constraints, suggests resilience and the ability to adapt to market conditions. The growth in the commercial and industrial markets, particularly in marine repair and power generation, could signal broader economic recovery and increased industrial activity.
Kirby's performance and outlook must be contextualized within the broader economic landscape. The company's anticipation of a 30% to 40% earnings growth in 2024 is predicated on continued strong demand in its core markets. However, it's essential to note the potential headwinds from economic uncertainties, including recession risks and inflationary pressures, which could dampen demand in the marine transportation and distribution services sectors.
The expected cash flow and capital expenditure plans indicate a strategic balance between maintaining operations and pursuing growth opportunities. The allocation of $190 million to $240 million for maintenance and improvements and up to $90 million for growth capital, demonstrates Kirby's commitment to sustaining its competitive edge while cautiously investing in expansion.
The inland marine outlook, with barge utilization rates projected to be in the low to mid-90% range, suggests that Kirby is well-positioned to capitalize on favorable industry dynamics, such as limited new barge construction. However, investors should remain vigilant about the potential impact of macroeconomic shifts on consumer behavior and industrial production, which could subsequently affect freight volumes and service demand.
- 2023 fourth quarter and full year earnings per share of
$1.04 and$3.72 , respectively - Inland marine experienced strong market conditions with a sequential increase in spot market prices and high-teens operating margins despite an increase in delay days
- Distribution and services revenue up sequentially and year-over-year despite supply chain delays
- Kirby repurchased 673,279 shares at an average price of
$77.08 for$51.9 million in the 2023 fourth quarter and 1,485,159 at an average price of$75.95 for$112.8 million for the full year - 2024 expected earnings growth of
30% to40% year-over-year - 2024 projected cash flow from operations of
$600 million to$700 million
HOUSTON, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net earnings attributable to Kirby for the fourth quarter ended December 31, 2023, of
For the 2023 full year, Kirby reported net earnings attributable to Kirby of
David Grzebinski, Kirby’s President, and Chief Executive Officer, commented, “During the fourth quarter, continued strong fundamentals in both our businesses resulted in significant year-over-year growth in our revenues and earnings. In marine transportation, pricing on spot and term contracts benefited from strong demand and limited availability of barges while the onset of winter weather conditions proved to be a headwind to efficiency in the quarter. Distribution and services delivered higher revenues sequentially, but margins were down slightly from the third quarter due to lower demand in our power rental business and typical seasonal slowness. We ended the year on a good note, and we anticipate strong growth in 2024.
“In inland marine, we continued to experience strong demand and high barge utilization with our barge utilization rates in the low
Mr. Grzebinski continued, “In our coastal marine business, we saw consistent customer demand during the fourth quarter that helped maintain barge utilization in the low to mid-90’s. Overall, coastal marine revenues were up
“In distribution and services, demand in the fourth quarter remained steady throughout much of the segment marked by a sequential increase in revenues, increases in new orders and steady backlog. In oil and gas, operating income was up sequentially and year-over-year as solid execution on our backlog and deliveries were partially offset by lower activity levels in remanufactured equipment. In commercial and industrial, while revenues were up sequentially, the seasonal falloff in our power rentals business led to a sequential decline in operating income. Despite supply chain issues and seasonal weakness, the business segment overall was strong for the year end” Mr. Grzebinski said.
Segment Results – Marine Transportation
Marine transportation revenues for the 2023 fourth quarter were
In inland, average 2023 fourth quarter barge utilization was in the low
In coastal, market conditions improved modestly during the quarter, with Kirby’s barge utilization remaining in the low to mid
Segment Results – Distribution and Services
Distribution and services revenues for the 2023 fourth quarter were
In the commercial and industrial market, revenues and operating income increased compared to the 2022 fourth quarter, primarily due to higher business levels in marine repair, on-highway and power generation. Thermo King also contributed favorably with sequential and year-on-year growth due to increased sales despite negative headwinds from supply chain constraints. Overall, commercial and industrial revenues increased
In the oil and gas market, revenues and operating income results were mixed when compared to the 2022 fourth quarter. The manufacturing business achieved significant year-over-year growth with orders and deliveries of pressure pumping equipment and power generation equipment for electric fracturing which was offset by lower activity in conventional remanufacturing. Overall, oil and gas revenues decreased
Cash Generation
For the 2023 fourth quarter, EBITDA was
2024 Outlook
Commenting on the 2024 full year outlook, Mr. Grzebinski said, “We ended 2023 in a position of strength in both of our segments. In marine transportation, barge utilization and customer demand remain strong, and rates continue to increase. In distribution and services, demand for our products and services remains strong, and we continue to receive new orders in manufacturing. Overall, we anticipate our businesses to deliver
In inland marine, our 2024 outlook anticipates positive market dynamics with steady customer demand and tight conditions due to limited new barge construction in the industry. In addition to this, many industry units are scheduled for maintenance. With these tight market conditions, we expect our barge utilization rates to be in the low to mid
In coastal marine, strong customer demand is expected throughout the year with barge utilization in the low to mid
In the distribution and services segment, despite the uncertainty from volatile commodity prices, we expect to yield incremental demand for OEM products, parts, and services in the segment. In commercial and industrial, strong demand for power generation and stable marine repair is expected to help drive full year revenue growth in the high single-digit to low double-digit percentage range. In oil and gas, our manufacturing backlog is expected to provide stable levels of activity through most of 2024 which will be offset by lower activity levels in the oilfield market. We anticipate extended lead times in the near-term to continue contributing to a volatile delivery schedule of new products in 2024. Overall, the Company expects segment revenues to be flat to slightly down on a full year basis with operating margins in the mid to high-single digits but slightly lower year-over-year due to mix.
Kirby expects to generate net cash provided from operating activities of
Leadership Update
Today we announce the retirement of Joseph H. Pyne, Kirby’s Chairman of the Board who will not stand for reelection upon the expiration of his current term, which expires at the conclusion of Kirby’s 2024 Annual Stockholders meeting on April 26, 2024. Mr. Pyne has served as Chairman of Kirby since April 2010 and has been a board member for 35 years. Succeeding Mr. Pyne is Richard J. “Dick” Alario who has been elected as Chairman of the Board, effective April 26, 2024. Mr. Alario has been a board member since 2011 and brings a tremendous skill set to this role. He has been involved with the Company and its strategy since joining the board and most recently served as Kirby’s Lead Independent director since 2021. Also, Rocky B. Dewbre, will not stand for election as a director at the conclusion of his term which expires on April 26, 2024. Mr. Dewbre was added to Kirby’s board last year in conjunction with the Cooperation Agreement between Kirby and shareholder JCP Investment Management.
Commenting on Mr. Dewbre’s departure and his retirement from Kirby, Mr. Pyne stated, “I want to thank Rocky for his contributions to the Board and to wish him well. With respect to my retirement from the Board, I have been with Kirby 46 years, and it has been a terrific journey. Kirby has grown tremendously during my time with the company, and it has done so from the strength of the excellent men and women who dedicate their careers to this great company. The outlook for Kirby is as good as I have ever seen and I am certain Mr. Alario as chairman, the Board, the management team, and all the employees will deliver a very bright future.”
Commenting on Mr. Dewbre’s departure and Mr. Pyne’s retirement, Mr. Grzebinski stated, “I wish Rocky well and thank him for his thoughtful input to Kirby. With respect to Joe, I have enjoyed working with Joe over the past 14 years. Joe’s wisdom and commitment to Kirby are unparalleled and he will very much be missed. On behalf of the Board and all Kirby employees we thank him for all he has done and wish Joe a happy and healthy retirement.”
Conference Call
A conference call is scheduled for 7:30 a.m. Central Standard Time today, Thursday, February 1, 2024, to discuss the 2023 fourth quarter performance as well as the outlook for 2024. 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 or closures, 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
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited, $ in thousands, except per share amounts) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Marine transportation | $ | 452,595 | $ | 422,736 | $ | 1,721,937 | $ | 1,616,967 | ||||||||
| Distribution and services | 346,581 | 307,429 | 1,369,703 | 1,167,787 | ||||||||||||
| Total revenues | 799,176 | 730,165 | 3,091,640 | 2,784,754 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of sales and operating expenses | 561,732 | 534,069 | 2,180,422 | 2,060,941 | ||||||||||||
| Selling, general and administrative | 84,343 | 80,971 | 335,213 | 302,692 | ||||||||||||
| Taxes, other than on income | 6,156 | 6,739 | 34,766 | 35,071 | ||||||||||||
| Depreciation and amortization | 54,905 | 50,945 | 211,156 | 201,443 | ||||||||||||
| Gain on disposition of assets | (779 | ) | (308 | ) | (5,009 | ) | (8,279 | ) | ||||||||
| Total costs and expenses | 706,357 | 672,416 | 2,756,548 | 2,591,868 | ||||||||||||
| Operating income | 92,819 | 57,749 | 335,092 | 192,886 | ||||||||||||
| Other income | 1,745 | 4,824 | 11,041 | 16,677 | ||||||||||||
| Interest expense | (13,115 | ) | (11,990 | ) | (52,008 | ) | (44,588 | ) | ||||||||
| Earnings before taxes on income | 81,449 | 50,583 | 294,125 | 164,975 | ||||||||||||
| Provision for taxes on income | (19,487 | ) | (13,258 | ) | (71,220 | ) | (42,214 | ) | ||||||||
| Net earnings | 61,962 | 37,325 | 222,905 | 122,761 | ||||||||||||
| Net (earnings) loss attributable to noncontrolling interests | (56 | ) | (16 | ) | 30 | (470 | ) | |||||||||
| Net earnings attributable to Kirby | $ | 61,906 | $ | 37,309 | $ | 222,935 | $ | 122,291 | ||||||||
| Net earnings per share attributable to Kirby common stockholders: | ||||||||||||||||
| Basic | $ | 1.05 | $ | 0.62 | $ | 3.74 | $ | 2.04 | ||||||||
| Diluted | $ | 1.04 | $ | 0.62 | $ | 3.72 | $ | 2.03 | ||||||||
| Common stock outstanding (in thousands): | ||||||||||||||||
| Basic | 58,970 | 59,890 | 59,531 | 60,038 | ||||||||||||
| Diluted | 59,335 | 60,211 | 59,857 | 60,329 | ||||||||||||
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| EBITDA:(1) | ||||||||||||||||
| Net earnings attributable to Kirby | $ | 61,906 | $ | 37,309 | $ | 222,935 | $ | 122,291 | ||||||||
| Interest expense | 13,115 | 11,990 | 52,008 | 44,588 | ||||||||||||
| Provision for taxes on income | 19,487 | 13,258 | 71,220 | 42,214 | ||||||||||||
| Depreciation and amortization | 54,905 | 50,945 | 211,156 | 201,443 | ||||||||||||
| $ | 149,413 | $ | 113,502 | $ | 557,319 | $ | 410,536 | |||||||||
| Capital expenditures | $ | 126,767 | $ | 52,343 | $ | 401,730 | $ | 172,606 | ||||||||
| Acquisitions of businesses and marine equipment | $ | — | $ | — | $ | 37,500 | $ | 3,900 | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| (unaudited, $ in thousands) | ||||||||
| Cash and cash equivalents | $ | 32,577 | $ | 80,577 | ||||
| Long-term debt, including current portion | $ | 1,016,595 | $ | 1,079,618 | ||||
| Total equity | $ | 3,186,677 | $ | 3,045,168 | ||||
| Debt to capitalization ratio | 24.2 | % | 26.2 | % | ||||
MARINE TRANSPORTATION STATEMENTS OF EARNINGS
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| Marine transportation revenues | $ | 452,595 | $ | 422,736 | $ | 1,721,937 | $ | 1,616,967 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of sales and operating expenses | 299,906 | 291,138 | 1,136,526 | 1,146,657 | ||||||||||||
| Selling, general and administrative | 33,049 | 34,916 | 134,641 | 128,340 | ||||||||||||
| Taxes, other than on income | 4,550 | 5,079 | 27,602 | 28,235 | ||||||||||||
| Depreciation and amortization | 46,901 | 44,884 | 184,225 | 177,551 | ||||||||||||
| Total costs and expenses | 384,406 | 376,017 | 1,482,994 | 1,480,783 | ||||||||||||
| Operating income | $ | 68,189 | $ | 46,719 | $ | 238,943 | $ | 136,184 | ||||||||
| Operating margin | 15.1 | % | 11.1 | % | 13.9 | % | 8.4 | % | ||||||||
DISTRIBUTION AND SERVICES STATEMENTS OF EARNINGS
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| Distribution and services revenues | $ | 346,581 | $ | 307,429 | $ | 1,369,703 | $ | 1,167,787 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of sales and operating expenses | 261,221 | 242,686 | 1,040,905 | 913,624 | ||||||||||||
| Selling, general and administrative | 48,840 | 41,778 | 187,424 | 163,642 | ||||||||||||
| Taxes, other than on income | 1,681 | 1,641 | 7,051 | 6,708 | ||||||||||||
| Depreciation and amortization | 6,186 | 4,263 | 19,842 | 16,776 | ||||||||||||
| Total costs and expenses | 317,928 | 290,368 | 1,255,222 | 1,100,750 | ||||||||||||
| Operating income | $ | 28,653 | $ | 17,061 | $ | 114,481 | $ | 67,037 | ||||||||
| Operating margin | 8.3 | % | 5.5 | % | 8.4 | % | 5.7 | % | ||||||||
OTHER COSTS AND EXPENSES
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| General corporate expenses | $ | 4,802 | $ | 6,339 | $ | 23,341 | $ | 18,614 | ||||||||
| Gain on disposition of assets | $ | (779 | ) | $ | (308 | ) | $ | (5,009 | ) | $ | (8,279 | ) | ||||
ONE-TIME CHARGES
The 2022 fourth quarter and 2023 and 2022 full year 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):
| Fourth Quarter 2023 | Full Year 2023 | |||||||||||||||||||||||
| Pre-Tax | After-Tax | Per Share | Pre-Tax | After-Tax | Per Share | |||||||||||||||||||
| (unaudited, $ in millions except per share amounts) | ||||||||||||||||||||||||
| GAAP earnings | $ | 81.4 | $ | 61.9 | $ | 1.04 | $ | 294.1 | $ | 222.9 | $ | 3.72 | ||||||||||||
| 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) | $ | 81.4 | $ | 61.9 | $ | 1.04 | $ | 294.4 | $ | 223.1 | $ | 3.72 | ||||||||||||
| Fourth Quarter 2022 | Full Year 2022 | |||||||||||||||||||||||
| Pre-Tax | After-Tax | Per Share | Pre-Tax | After-Tax | Per Share | |||||||||||||||||||
| (unaudited, $ in millions except per share amounts) | ||||||||||||||||||||||||
| GAAP earnings | $ | 50.6 | $ | 37.3 | $ | 0.62 | $ | 165.0 | $ | 122.3 | $ | 2.03 | ||||||||||||
| Severance expense | 3.3 | 2.4 | 0.04 | 4.8 | 3.7 | 0.06 | ||||||||||||||||||
| Strategic alternatives review | 0.9 | 0.6 | 0.01 | 0.9 | 0.6 | 0.01 | ||||||||||||||||||
| Earnings, excluding one-time items(2) | $ | 54.8 | $ | 40.3 | $ | 0.67 | $ | 170.7 | $ | 126.6 | $ | 2.10 | ||||||||||||
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):
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022(3) | 2023 | 2022(3) | |||||||||||||
| (unaudited, $ in millions) | ||||||||||||||||
| Net cash provided by operating activities | $ | 216.0 | $ | 132.9 | $ | 540.2 | $ | 294.1 | ||||||||
| Less: Capital expenditures | (126.7 | ) | (52.3 | ) | (401.7 | ) | (172.6 | ) | ||||||||
| Free cash flow(2) | $ | 89.3 | $ | 80.6 | $ | 138.5 | $ | 121.5 | ||||||||
MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
| Fourth Quarter | Year | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Inland Performance Measurements: | ||||||||||||||||
| Ton Miles (in millions)(4) | 3,340 | 3,365 | 13,571 | 13,775 | ||||||||||||
| Revenue/Ton Mile (cents/tm)(5) | 11.2 | 10.0 | 10.4 | 9.3 | ||||||||||||
| Towboats operated (average)(6) | 281 | 277 | 280 | 271 | ||||||||||||
| Delay Days(7) | 2,873 | 3,092 | 10,863 | 10,244 | ||||||||||||
| Average cost per gallon of fuel consumed | $ | 3.41 | $ | 4.00 | $ | 3.08 | $ | 3.70 | ||||||||
| Barges (active): | ||||||||||||||||
| Inland tank barges | 1,076 | 1,037 | ||||||||||||||
| Coastal tank barges | 28 | 29 | ||||||||||||||
| Offshore dry-cargo barges | 4 | 4 | ||||||||||||||
| Barrel capacities (in millions): | ||||||||||||||||
| Inland tank barges | 23.7 | 23.1 | ||||||||||||||
| Coastal tank barges | 2.9 | 3.0 | ||||||||||||||
- 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, impairment of long-lived assets, and impairment of goodwill. 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.
- 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 as a result of uncertainty surrounding the impact of the COVID-19 pandemic on global and regional market conditions. 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.
- See Kirby’s 2022 10-K for amounts provided by (used in) investing and financing activities.
- 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.
- Inland marine transportation revenues divided by ton miles. Example: Fourth quarter 2023 inland marine transportation revenues of
$373.2 million divided by 3,340 million inland marine transportation ton miles = 11.2 cents. - 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 more tank barges) during transit. The measure includes transit delays caused by weather, lock delays or closures, and other navigational factors.
| Contact: | Kurt Niemietz |
| 713-435-1077 |
FAQ
What were Kirby Corporation's (KEX) 2023 fourth quarter and full year earnings per share?
What was the sequential increase in spot market prices and operating margins for inland marine?
How many shares did Kirby repurchase in 2023 and at what average price?
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What is the projected cash flow from operations for Kirby in 2024?
