Kirby Corporation Announces 2024 Second Quarter Results
Kirby (NYSE: KEX) reported strong Q2 2024 results with earnings per share of $1.43, up from $0.95 in Q2 2023. Consolidated revenues reached $824.4 million, a 6% increase year-over-year. The company saw continued strong market conditions in both inland and coastal marine transportation, with inland operating margins in the low 20% range and coastal margins improving to the low teens. Kirby's distribution and services segment showed stable demand across markets. The company repurchased 372,265 shares for $43.7 million and closed an acquisition of 13 barges and two high horsepower boats. Kirby expects continued growth, projecting full-year inland revenues to increase by high single to low double digits and coastal revenues to grow in the low double to mid-teens range.
Kirby (NYSE: KEX) ha riportato risultati forti nel secondo trimestre del 2024 con utili per azione di $1.43, rispetto ai $0.95 del secondo trimestre del 2023. I ricavi consolidati hanno raggiunto $824.4 milioni, con un aumento del 6% rispetto all'anno precedente. L'azienda ha registrato condizioni di mercato solide sia nel trasporto marittimo interno che costiero, con margini operativi interni nella fascia bassa del 20% e margini costieri in miglioramento nella fascia bassa dei teen. Il segmento distribuzione e servizi di Kirby ha mostrato una domanda stabile in tutti i mercati. L'azienda ha riacquistato 372.265 azioni per $43.7 milioni e ha concluso l'acquisizione di 13 chiatte e due barche ad alta potenza. Kirby prevede una continua crescita, stimando un aumento dei ricavi interni per l'intero anno nella fascia alta dei singoli punti percentuali fino a quella bassa dei doppio punti percentuali e una crescita dei ricavi costieri nella fascia bassa dei doppio a quella media dei teen.
Kirby (NYSE: KEX) reportó resultados sólidos en el segundo trimestre de 2024, con ganancias por acción de $1.43, en comparación con $0.95 en el segundo trimestre de 2023. Los ingresos consolidados alcanzaron $824.4 millones, un aumento del 6% en comparación con el año anterior. La compañía observó condiciones de mercado fuertes tanto en el transporte marino interno como costero, con márgenes operativos internos en el rango bajo del 20% y márgenes costeros mejorando en el rango bajo de los adolescentes. El segmento de distribución y servicios de Kirby mostró una demanda estable en todos los mercados. La empresa recompró 372,265 acciones por $43.7 millones y cerró la adquisición de 13 barcazas y dos barcos de alta potencia. Kirby espera un crecimiento continuo, proyectando que los ingresos internos anuales aumenten en un solo dígito alto a un bajo doble dígito y que los ingresos costeros crezcan en un rango de bajo a medio doble dígito.
커비(Kirby) (NYSE: KEX)는 2024년 2분기 강력한 실적을 보고했으며, 주당 수익이 $1.43로 2023년 2분기의 $0.95에서 증가했습니다. 통합 수익은 $824.4백만에 달했습니다, 전년 대비 6% 증가했습니다. 회사는 내륙 및 해안 해양 운송 모두에서 안정적인 시장 상황을 지속적으로 확인했습니다, 내륙 운영 마진은 20% 초반에서, 해안 마진은 10대 초반으로 개선되었습니다. 커비의 유통 및 서비스 부문은 모든 시장에서 안정된 수요를 보였습니다. 회사는 $43.7백만에 372,265주를 재매입했습니다와 13척의 바지선과 두 척의 고출력 보트를 인수 완료했습니다. 커비는 지속적인 성장을 예상하며, 연간 내륙 수익이 높은 단일 숫자에서 낮은 이중 숫자로 증가할 것으로 예상하고, 해안 수익은 낮은 이중 숫자에서 중간 10대 사이로 성장할 것으로 예상하고 있습니다.
Kirby (NYSE: KEX) a annoncé de bons résultats pour le deuxième trimestre 2024, avec un bénéfice par action de $1.43, contre $0.95 au deuxième trimestre 2023. Les revenus consolidés ont atteint $824.4 millions, soit une augmentation de 6 % par rapport à l'année précédente. L'entreprise a connu des conditions de marché solides, tant pour le transport maritime intérieur que côtier, avec des marges opérationnelles intérieures dans la fourchette basse de 20 % et des marges côtières s'améliorant dans les faibles adolescents. Le segment distribution et services de Kirby a montré une demande stable sur tous les marchés. L'entreprise a racheté 372,265 actions pour $43.7 millions et a finalisé l'acquisition de 13 barges et de deux bateaux haute puissance. Kirby s'attend à une croissance continue, prévoyant que les revenus intérieurs de l'année complète augmentent de chiffres uniques élevés à chiffres doubles bas et que les revenus côtiers croissent dans la fourchette basse à moyenne des doubles chiffres.
Kirby (NYSE: KEX) berichtete über starke Ergebnisse im 2. Quartal 2024 mit Gewinnen pro Aktie von $1.43, ein Anstieg von $0.95 im 2. Quartal 2023. Die konsolidierten Einnahmen erreichten $824.4 Millionen, was einem Anstieg von 6 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete fortdauernd starke Marktbedingungen sowohl im Binnen- als auch im Küstentransport, mit operativen Margen im Binnenverkehr im niedrigen 20 % Bereich und beim Küstentransport Verbesserungen im niedrigen Teen-Bereich. Kirbys Vertriebs- und Dienstleistungssegment zeigte eine stabile Nachfrage in allen Märkten. Das Unternehmen hat 372.265 Aktien für $43.7 Millionen zurückgekauft und eine Übernahme von 13 Barge und zwei Hochleistungsboote abgeschlossen. Kirby erwartet ein anhaltendes Wachstum und prognostiziert, dass die Binnenumsätze für das gesamte Jahr um hohe Einzelzahlen bis niedrige zweistellige Ziffern steigen und die Küsteneinnahmen im niedrigen zweistelligen bis mittleren Teen-Bereich wachsen werden.
- Earnings per share increased to $1.43 from $0.95 year-over-year
- Consolidated revenues grew 6% to $824.4 million
- Inland marine operating margins in the low 20% range
- Coastal marine operating margins improved to the low teens
- Spot market prices increased in both inland and coastal segments
- Repurchased 372,265 shares for $43.7 million
- Acquired 13 barges and two high horsepower boats
- Strong cash generation with EBITDA of $182.9 million
- Projected growth in both inland and coastal marine segments for full-year 2024
- Modest weather and navigational challenges in marine transportation
- Supply constraints in distribution and services segment
- Oil and gas market revenues declined year-over-year
- Potential recession could impact expected growth
- Extended lead times for certain OEM products may contribute to volatile delivery schedules
Insights
Kirby 's Q2 2024 results demonstrate robust performance across its marine transportation and distribution & services segments. The company reported earnings per share of
Key financial highlights include:
- Net earnings of
$83.9 million , up from$57.4 million in Q2 2023 - Consolidated revenues of
$824.4 million , a6.1% increase year-over-year - Marine transportation revenues up
13.5% to$484.8 million - Distribution & services revenues slightly down to
$339.6 million
The company's improved profitability is evident in the marine transportation segment's operating margin, which increased to
The company's outlook remains positive, with expectations of high single to low double-digit revenue growth in inland marine and low double to mid-teens growth in coastal marine for the full year. However, investors should note potential headwinds, including the possibility of a recession impacting demand and ongoing supply constraints in the distribution & services segment.
Kirby 's Q2 2024 results reflect favorable market dynamics in the marine transportation sector. The inland marine segment saw barge utilization rates in the low to mid-90% range, indicating strong demand. Spot market prices increased in the low to mid-single digits sequentially and mid-teens year-over-year, while term contract prices rose in the mid-single digits compared to last year.
The coastal marine segment experienced even stronger pricing power, with:
- Barge utilization in the mid to high-90% range
- Term contract renewals up in the high teens percentage year-over-year
- Spot market rates increasing in the high-single digits sequentially and mid-20% range year-over-year
These pricing trends suggest a tight supply-demand balance in the marine transportation market, which bodes well for Kirby's near-term profitability. The company's recent acquisition of 13 barges and two high horsepower boats further strengthens its market position.
In the distribution & services segment, market conditions varied:
- Power generation saw strong growth, particularly in industrial end markets (up
87% year-over-year) - Commercial and industrial markets showed steady demand
- Oil and gas markets experienced some weakness in conventional oilfield activity, partially offset by growth in e-frac equipment deliveries
The diverse performance across these markets highlights the importance of Kirby's balanced portfolio in navigating varying economic conditions. Investors should monitor potential supply chain constraints and the broader economic environment, which could impact the company's growth trajectory in the distribution & services segment.
- Second quarter 2024 earnings per share of
$1.43 - Continued strong market conditions in inland marine with a sequential increase in spot market prices and operating margins in the low
20% range - Continued strong market conditions in coastal marine with operating margins improving to the low teens range
- Kirby repurchased 372,265 shares at an average price of
$117.33 for$43.7 million in the 2024 second quarter - Closed previously announced acquisition of 13 barges, including three specialty barges, and two high horsepower boats
HOUSTON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net earnings attributable to Kirby for the second quarter ended June 30, 2024, of
David Grzebinski, Kirby’s Chief Executive Officer, commented, “Our second quarter results reflected steady fundamentals in both marine transportation and distribution and services, with some modest weather and navigational challenges for marine and continued supply constraints in distribution & services. These challenges were offset by good execution. Solid demand in both marine and distribution and services continued during the quarter and led to strong financial performance.
“In inland marine transportation, our second quarter results reflected continued pricing momentum with a modest impact from poor navigational conditions due to weather and lock delays. From a demand standpoint, customer activity was steady with barge utilization rates running in the low to mid
“In coastal, market fundamentals remained steady with our barge utilization levels running in the mid to high
“In distribution and services, total demand was stable across our markets with sequential growth in revenue and operating income. In power generation, the pace of orders was strong with several large projects wins from backup power and other industrial customers as power becomes more critical. In oil and gas, revenues were down year-on-year but up over
Segment Results – Marine Transportation
Marine transportation revenues for the 2024 second quarter were
In the inland market, 2024 second quarter average barge utilization was in the low to mid
In coastal, market conditions were strong during the quarter, with Kirby’s barge utilization in the mid to high
Segment Results – Distribution and Services
Distribution and services revenues for the 2024 second quarter were
In the power generation market, revenues grew
In the commercial and industrial market, revenues grew
In the oil and gas market, revenues grew
Cash Generation
For the 2024 second quarter, EBITDA was
2024 Outlook
Commenting on the outlook for the remainder of 2024, Mr. Grzebinski said, “Overall, solid execution and favorable market conditions led to a strong first half of the year for us and we have a favorable outlook for the remainder of the year. We see growth coming in at the higher end of our previously guided range, our balance sheet is strong and we expect to generate significant free cash flow this year. We see favorable markets continuing and expect our businesses will produce strong financial results as we move through the remainder of this year and into next year.”
In inland marine, our outlook for the remainder of 2024 anticipates continued positive market dynamics with steady customer demand and limited new barge construction in the industry. In addition to this, many industry units are scheduled for maintenance. With these favorable market conditions, we expect our barge utilization rates to remain 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 incremental demand for products, parts, and services in the segment. In commercial and industrial, the demand outlook in marine repair is strong while on-highway is somewhat weak with the exception of refrigeration products and services. In power generation, we anticipate continued strong growth as data center demand and the need for backup power is very strong. In oil and gas, activity levels are lower but seem to be bottoming. We do anticipate extended lead times for certain OEM products to continue contributing to a volatile delivery schedule of new products in 2024 and into 2025. 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 full year 2024 compared to full year 2023 due to mix.
Kirby expects to generate net cash provided from operating activities of
Conference Call
A conference call is scheduled for 7:30 a.m. Central Standard Time today, Thursday, August 1, 2024, to discuss the 2024 second 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 2023 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, 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, 2023.
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, and specialized electrical distribution and control equipment for oilfield customers.
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||
| Second Quarter | Six Months | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited, $ in thousands, except per share amounts) | |||||||||||||||
| Revenues: | |||||||||||||||
| Marine transportation | $ | 484,808 | $ | 426,962 | $ | 960,220 | $ | 839,457 | |||||||
| Distribution and services | 339,582 | 350,286 | 672,192 | 688,235 | |||||||||||
| Total revenues | 824,390 | 777,248 | 1,632,412 | 1,527,692 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Costs of sales and operating expenses | 554,232 | 546,069 | 1,104,913 | 1,088,149 | |||||||||||
| Selling, general and administrative | 80,383 | 82,896 | 170,589 | 171,745 | |||||||||||
| Taxes, other than on income | 10,310 | 9,758 | 18,354 | 18,944 | |||||||||||
| Depreciation and amortization | 59,482 | 51,697 | 117,124 | 102,806 | |||||||||||
| Gain on disposition of assets | (515 | ) | (472 | ) | (589 | ) | (2,702 | ) | |||||||
| Total costs and expenses | 703,892 | 689,948 | 1,410,391 | 1,378,942 | |||||||||||
| Operating income | 120,498 | 87,300 | 222,021 | 148,750 | |||||||||||
| Other income | 3,088 | 1,264 | 6,357 | 7,707 | |||||||||||
| Interest expense | (12,819 | ) | (12,286 | ) | (25,970 | ) | (25,507 | ) | |||||||
| Earnings before taxes on income | 110,767 | 76,278 | 202,408 | 130,950 | |||||||||||
| Provision for taxes on income | (26,785 | ) | (18,960 | ) | (48,511 | ) | (33,011 | ) | |||||||
| Net earnings | 83,982 | 57,318 | 153,897 | 97,939 | |||||||||||
| Net (earnings) loss attributable to noncontrolling interests | (128 | ) | 49 | 25 | 126 | ||||||||||
| Net earnings attributable to Kirby | $ | 83,854 | $ | 57,367 | $ | 153,922 | $ | 98,065 | |||||||
| Net earnings per share attributable to Kirby common stockholders: | |||||||||||||||
| Basic | $ | 1.44 | $ | 0.96 | $ | 2.64 | $ | 1.64 | |||||||
| Diluted | $ | 1.43 | $ | 0.95 | $ | 2.62 | $ | 1.63 | |||||||
| Common stock outstanding (in thousands): | |||||||||||||||
| Basic | 58,181 | 59,806 | 58,324 | 59,892 | |||||||||||
| Diluted | 58,592 | 60,085 | 58,703 | 60,179 | |||||||||||
| CONDENSED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||||
| Second Quarter | Six Months | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited, $ in thousands) | |||||||||||||||
| EBITDA: (1) | |||||||||||||||
| Net earnings attributable to Kirby | $ | 83,854 | $ | 57,367 | $ | 153,922 | $ | 98,065 | |||||||
| Interest expense | 12,819 | 12,286 | 25,970 | 25,507 | |||||||||||
| Provision for taxes on income | 26,785 | 18,960 | 48,511 | 33,011 | |||||||||||
| Depreciation and amortization | 59,482 | 51,697 | 117,124 | 102,806 | |||||||||||
| $ | 182,940 | $ | 140,310 | $ | 345,527 | $ | 259,389 | ||||||||
| Capital expenditures | $ | 88,560 | $ | 98,046 | $ | 169,607 | $ | 171,245 | |||||||
| Acquisitions of businesses and marine equipment | $ | 65,232 | $ | — | $ | 65,232 | $ | — | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| (unaudited, $ in thousands) | |||||||
| Cash and cash equivalents | $ | 53,540 | $ | 32,577 | |||
| Long-term debt, including current portion | $ | 1,048,090 | $ | 1,016,595 | |||
| Total equity | $ | 3,262,678 | $ | 3,186,677 | |||
| Debt to capitalization ratio | 24.3 | % | 24.2 | % | |||
| MARINE TRANSPORTATION STATEMENTS OF EARNINGS | ||||||||||||||||
| Second Quarter | Six Months | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| Marine transportation revenues | $ | 484,808 | $ | 426,962 | $ | 960,220 | $ | 839,457 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of sales and operating expenses | 299,975 | 275,618 | 601,237 | 557,641 | ||||||||||||
| Selling, general and administrative | 32,527 | 33,605 | 69,648 | 68,592 | ||||||||||||
| Taxes, other than on income | 8,383 | 7,962 | 14,580 | 15,269 | ||||||||||||
| Depreciation and amortization | 49,047 | 45,526 | 96,896 | 90,668 | ||||||||||||
| Total costs and expenses | 389,932 | 362,711 | 782,361 | 732,170 | ||||||||||||
| Operating income | $ | 94,876 | $ | 64,251 | $ | 177,859 | $ | 107,287 | ||||||||
| Operating margin | 19.6 | % | 15.0 | % | 18.5 | % | 12.8 | % | ||||||||
| DISTRIBUTION AND SERVICES STATEMENTS OF EARNINGS | ||||||||||||||||
| Second Quarter | Six Months | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited, $ in thousands) | ||||||||||||||||
| Distribution and services revenues | $ | 339,582 | $ | 350,286 | $ | 672,192 | $ | 688,235 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Costs of sales and operating expenses | 253,742 | 268,657 | 503,145 | 528,521 | ||||||||||||
| Selling, general and administrative | 45,919 | 45,686 | 97,440 | 94,883 | ||||||||||||
| Taxes, other than on income | 1,900 | 1,707 | 3,728 | 3,558 | ||||||||||||
| Depreciation and amortization | 8,585 | 4,394 | 16,429 | 8,639 | ||||||||||||
| Total costs and expenses | 310,146 | 320,444 | 620,742 | 635,601 | ||||||||||||
| Operating income | $ | 29,436 | $ | 29,842 | $ | 51,450 | $ | 52,634 | ||||||||
| Operating margin | 8.7 | % | 8.5 | % | 7.7 | % | 7.6 | % | ||||||||
| OTHER COSTS AND EXPENSES | |||||||||||||||
| Second Quarter | Six Months | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited, $ in thousands) | |||||||||||||||
| General corporate expenses | $ | 4,329 | $ | 7,265 | $ | 7,877 | $ | 13,873 | |||||||
| Gain on disposition of assets | $ | (515 | ) | $ | (472 | ) | $ | (589 | ) | $ | (2,702 | ) | |||
| ONE-TIME CHARGES |
The 2023 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):
| First Six Months 2023 | |||||||||||
| Pre-Tax | After-Tax | Per Share | |||||||||
| (unaudited, $ in millions except per share amounts) | |||||||||||
| GAAP earnings | $ | 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) | $ | 131.3 | $ | 98.3 | $ | 1.63 | |||||
| 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 | ||||||||||||||
| 2024 | 2023(3) | 2024 | 2023(3) | ||||||||||||
| (unaudited, $ in millions) | |||||||||||||||
| Net cash provided by operating activities | $ | 179.3 | $ | 211.4 | $ | 302.6 | $ | 227.9 | |||||||
| Less: Capital expenditures | (88.6 | ) | (98.0 | ) | (169.6 | ) | (171.2 | ) | |||||||
| Free cash flow(2) | $ | 90.7 | $ | 113.4 | $ | 133.0 | $ | 56.7 | |||||||
| MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS | |||||||||||||||
| Second Quarter | Six Months | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Inland Performance Measurements: | |||||||||||||||
| Ton Miles (in millions) (4) | 3,330 | 3,500 | 6,634 | 6,940 | |||||||||||
| Revenue/Ton Mile (cents/tm) (5) | 11.8 | 10.1 | 11.7 | 9.9 | |||||||||||
| Towboats operated (average) (6) | 287 | 281 | 287 | 282 | |||||||||||
| Delay Days (7) | 3,334 | 2,317 | 6,841 | 6,442 | |||||||||||
| Average cost per gallon of fuel consumed | $ | 2.83 | $ | 2.87 | $ | 2.83 | $ | 3.09 | |||||||
| Barges (active): | |||||||||||||||
| Inland tank barges | 1,093 | 1,045 | |||||||||||||
| Coastal tank barges | 28 | 29 | |||||||||||||
| Offshore dry-cargo barges | 4 | 4 | |||||||||||||
| Barrel capacities (in millions): | |||||||||||||||
| Inland tank barges | 24.2 | 23.3 | |||||||||||||
| Coastal tank barges | 2.9 | 3.0 | |||||||||||||
(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, 2023, and its quarterly report on Form 10-Q for the quarter ended June 30, 2023 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 2024 inland marine transportation revenues of
(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 Niemietz
713-435-1077
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