* 2007 first quarter earnings per share were $.46 versus $.42
reported for the 2006 first quarter HOUSTON, April 25
/PRNewswire-FirstCall/ -- Kirby Corporation (NYSE:KEX) ("Kirby")
today announced record net earnings for the first quarter ended
March 31, 2007 of $24,422,000, or $.46 per share, compared with net
earnings of $22,511,000, or $.42 per share, for the 2006 first
quarter. Consolidated revenues for the 2007 first quarter were a
record $274,211,000, an increase of 22% over $224,903,000 reported
for the 2006 first quarter. Revenues for the marine transportation
segment for the 2007 first quarter increased 10% and operating
income increased 11% compared with the first quarter of 2006. The
higher results reflected continued strong petrochemical and black
oil demand, expected first quarter winter weather conditions, and
the impact of contract rate increases during 2006 and the 2007
first quarter, as well as higher spot market prices. The marine
transportation operating margin was 18.4% for both the 2007 and
2006 first quarters. The diesel engine services segment for the
2007 first quarter reported 83% higher revenues and operating
income increased 72% compared with the corresponding 2006 quarter.
The higher diesel engine services results reflected the accretive
acquisitions of Global Power Holding Company ("Global") on June 7,
2006 and Marine Engine Specialist ("MES") on July 21, 2006, as well
as continued strong in-house and in-field service activity and
direct parts sales in its marine, power generation and railroad
markets. In addition, the segment benefited from higher service
rates and parts pricing implemented during 2006 and in the 2007
first quarter. The diesel engine services operating margin for the
2007 first quarter was 15.2% compared with 16.2% for the 2006 first
quarter. Joe Pyne, Kirby's President and Chief Executive Officer,
commented, "Both our marine transportation and diesel engine
services business fundamentals remained very strong in the 2007
first quarter. Our inland marine transportation segment was
essentially at full utilization, with no spare capacity, and
pricing continued to trend upward. The earnings contribution from
our four ocean-going barge and tug units was at expected lower
levels, as one of the units was in the shipyard for scheduled major
maintenance for the entire quarter." Commenting on the 2007 second
quarter market conditions and guidance, Mr. Pyne said, "We
anticipate our marine transportation business levels will remain
strong, with some normal seasonal improvement in our agricultural
chemical market. We anticipate our diesel engine services segment
to remain strong, although not as strong as the first quarter which
historically includes seasonal winter work for Midwest and Great
Lakes marine customers. We also expect the earnings contribution
from our four offshore barge and tug units to increase as all four
units are anticipated to be in service for the majority of the
quarter. For the 2007 second quarter, our earnings per share
guidance is $.48 to $.53, compared with $.44 per share reported for
the 2006 second quarter. For the 2007 year, our earnings per share
guidance remains at $1.95 to $2.10 compared with 2006 earnings per
share of $1.79. Capital spending guidance for 2007 is $135 to $145
million and includes approximately $65 million for the construction
of 26 tank barges and six towboats. Delivery is scheduled
throughout 2007 and into early 2008." This earnings press release
includes marine transportation performance measures for both the
2007 and 2006 first quarters. The performance measures include ton
miles, revenue per ton mile, towboats operated and delay days.
Comparable performance measures for the 2006 and 2005 years and
quarters are available at Kirby's web site under the caption
Performance Measurements in the Investor Relations section. Kirby's
homepage can be accessed by visiting http://www.kirbycorp.com/ . A
conference call is scheduled at 10:00 a.m. central time tomorrow,
Thursday, April 26, 2007, to discuss the 2007 first quarter and the
outlook for the 2007 second quarter and year. The conference call
number is 888-328-2514 for domestic callers and 706-679-3262 for
international callers. The leader's name is Steve Holcomb. An audio
playback will be available starting at approximately 1:00 p.m.
central time on Thursday, April 26, through 6:00 p.m. central time
on Friday, May 25, 2007, by dialing 800-642- 1687 for domestic
callers and 706-645-9291 for international callers. The conference
ID number is 5523213. The conference call can also be accessed by
visiting Kirby's homepage at http://www.kirbycorp.com/ or at
http://audioevent.mshow.com/331083 . A replay will be available on
each of those web sites following the conference call. 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 before interest expense, taxes on
income, depreciation and amortization. A reconciliation of EBITDA
for the 2007 and 2006 first quarters with GAAP net earnings for the
same periods is included in the Condensed Consolidated Financial
Information in this press release. Kirby Corporation, based in
Houston, Texas, operates inland tank barges and towing vessels,
transporting petrochemicals, black oil products, refined petroleum
products and agricultural chemicals throughout the United States
inland waterway system. Kirby also owns and operates four
ocean-going barge and tug units transporting dry-bulk commodities
in United States coastwise trade. 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, power generation and railroad applications. 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,
2006 filed with the Securities and Exchange Commission. CONFERENCE
CALL INFORMATION Date: Thursday, April 26, 2007 Leader: Steve
Holcomb Time: 10:00 a.m. central time Conf. ID: 5523213 U.S.:
888-328-2514 Int'l: 706-679-3262 Website: http://www.kirbycorp.com/
or http://audioevent.mshow.com/331083 A summary of the results for
the first quarter follows: CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS First Quarter 2007 2006 (1) (unaudited, $ in thousands
except per share amounts) Revenues: Marine transportation $209,065
$189,383 Diesel engine services 65,146 35,520 274,211 224,903 Costs
and expenses: Costs of sales and operating expenses 175,599 144,490
Selling, general and administrative 30,506 23,761 Taxes, other than
on income 3,134 3,187 Depreciation and amortization 19,587 15,090
Loss (gain) on disposition of assets 499 (157) 229,325 186,371
Operating income 44,886 38,532 Equity in earnings of marine
affiliates 98 466 Other income (expense) (248) 66 Interest expense
(5,154) (2,698) Earnings before taxes on income 39,582 36,366
Provision for taxes on income (15,160) (13,855) Net earnings
$24,422 $22,511 Net earnings per share of common stock: Basic $0.46
$0.43 Diluted $0.46 $0.42 Common stock outstanding (in thousands):
Basic 52,713 52,050 Diluted 53,591 53,002 CONDENSED CONSOLIDATED
FINANCIAL INFORMATION First Quarter 2007 2006 (1) (unaudited, $ in
thousands except per share amounts) EBITDA: (2) Net earnings
$24,422 $22,511 Interest expense 5,154 2,698 Provision for taxes on
income 15,160 13,855 Depreciation and amortization 19,587 15,090
$64,323 $54,154 Capital expenditures $53,649 $21,626 Acquisitions
of businesses and marine equipment $47,317 $16,240 March 31, 2007
2006 (1) (unaudited, $ in thousands) Long-term debt, including
current portion $360,574 $200,602 Stockholders' equity $661,045
$573,324 Debt to capitalization ratio 35.3% 25.9% MARINE
TRANSPORTATION STATEMENTS OF EARNINGS First Quarter 2007 2006 (1)
(unaudited, $ in thousands) Marine transportation revenues $209,065
$189,383 Costs and expenses: Costs of sales and operating expenses
128,830 119,083 Selling, general and administrative 20,480 18,162
Taxes, other than on income 2,878 3,011 Depreciation and
amortization 18,316 14,298 170,504 154,554 Operating income $38,561
$34,829 Operating margins 18.4% 18.4% DIESEL ENGINE SERVICES
STATEMENTS OF EARNINGS First Quarter 2007 2006 (unaudited, $ in
thousands) Diesel engine services revenues $65,146 $35,520 Costs
and expenses: Costs of sales and operating expenses 46,769 25,407
Selling, general and administrative 7,310 3,922 Taxes, other than
on income 244 87 Depreciation and amortization 926 339 55,249
29,755 Operating income $9,897 $5,765 Operating margins 15.2% 16.2%
OTHER COSTS AND EXPENSES First Quarter 2007 2006 (unaudited, $ in
thousands) General corporate expenses $3,073 $2,219 Loss (gain) on
disposition of assets $499 $(157) MARINE TRANSPORTATION PERFORMANCE
MEASUREMENTS First Quarter 2007 2006 Ton Miles (in millions) (3)
3,777 3,795 Revenue/Ton Mile (cents/tm) (4) 5.3 5.0 Towboats
operated (average) (5) 248 239 Delay Days (6) 2,600 2,471 Average
cost per gallon of fuel consumed $1.71 $1.84 Tank barges: Active
913 893 Inactive 52 69 Barrel Capacities (in millions): Active 17.3
16.6 Inactive .9 1.3 (1) In the 2007 first quarter, Kirby adopted
Financial Accounting Standards Board Staff Position No. AUG AIR-1,
"Accounting for Planned Major Maintenance Activities." The guidance
prohibits the use of the accrue-in-advance method of accounting for
planned major maintenance activities in interim and annual
financial reporting periods because an obligation has not occurred
and therefore a liability should not be recognized. The adoption
resulted in the recast of Kirby's prior years' quarterly results,
reducing the 2006 first quarter net earnings by $69,000, thereby
reducing earnings per share by $.01 to $.42. The adoption had no
impact on Kirby's annual financial statements. (2) 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 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. (3) 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. (4) Inland marine transportation revenues
divided by ton miles. Example: First quarter 2007 inland marine
revenues of $200,040,000 divided by 3,777,000,000 marine
transportation ton miles = 5.3 cents. (5) Towboats operated are the
average number of owned and chartered towboats operated during the
period. (6) 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. DATASOURCE: Kirby Corporation CONTACT:
Steve Holcomb of Kirby Corporation, +1-713-435-1135 Web site:
http://www.kirbycorp.com/ http://audioevent.mshow.com/331083
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