- 2008 first quarter earnings per share were $.68, a 48% increase
compared with $.46 earned in the 2007 first quarter HOUSTON, April
23 /PRNewswire-FirstCall/ -- Kirby Corporation ("Kirby") (NYSE:KEX)
today announced record net earnings for the first quarter ended
March 31, 2008 of $36.6 million, or $.68 per share, compared with
net earnings of $24.4 million, or $.46 per share, for the 2007
first quarter. Kirby's initial published 2008 first quarter
earnings guidance range was $.57 to $.62 per share, which was
revised to exceed $.66 per share on March 17. Consolidated revenues
for the 2008 first quarter were a record $330.6 million, an
increase of 21% over the $274.2 million reported for the 2007 first
quarter. Joe Pyne, Kirby's President and Chief Executive Officer
commented, "Our financial results produced the 17th consecutive
quarter in which our earnings exceeded the same quarter of the
previous year. The marine transportation fundamentals remain
favorable. We operated additional boats during the quarter and
operated more equipment on time charters which are insulated from
revenue fluctuations caused by weather and navigational delays and
temporary market declines. Our diesel engine services segment
continued to experience strong demand in our medium-speed markets,
while our high-speed Gulf Coast market was, as expected, slower due
to seasonal softness in the oil service market." Segment Results -
Marine Transportation Marine transportation revenues and operating
income for the 2008 first quarter increased 25% and 44%,
respectively, compared with the first quarter of 2007. A major
driver with respect to the 25% increase in marine transportation
revenues was the recovery of higher diesel fuel costs. The marine
transportation operating margin was 21.3% for the 2008 first
quarter compared with 18.4% for the 2007 first quarter. The record
results reflected continued strong demand, higher contract and spot
market rates, rate escalators on multi-year contracts and increased
efficiencies from the continued improvement in vessel personnel and
towboat availability, partially offset by increased delay days
caused by winter weather conditions compared with the 2007 first
quarter. Segment Results - Diesel Engine Services Diesel engine
services revenues and operating income for the 2008 first quarter
increased 6% and 12%, respectively, compared with the 2007 first
quarter. The diesel engine services operating margin was 16.0% for
the 2008 first quarter compared with 15.2% for the 2007 first
quarter. The record results reflected continued strong demand for
service work and parts sales in the medium-speed engine markets,
benefiting from seasonal work for Midwest and Great Lakes
customers, and a large power generation modification project. The
high-speed Gulf Coast market, as anticipated, was slower due to
seasonal softness in demand for diesel engine services to the oil
service market. The results also reflected the accretive
acquisition in July 2007 of Saunders Engine and Equipment Company,
Inc., a high-speed diesel engine services provider. Outlook
Commenting on the 2008 second quarter, Mr. Pyne said, "We expect
our marine transportation business levels to remain strong and
anticipate continued favorable contract and spot market rate
increases. Business levels in our diesel engine services markets
are also anticipated to remain favorable. We do anticipate a
significant increase in delay days in the second quarter due to
high water conditions on the Mississippi River System which will
have a negative impact on our second quarter financial results. For
the 2008 second quarter, our earnings guidance is $.69 to $.74 per
share, reflecting a 23% to 32% increase compared with $.56 per
share for the 2007 second quarter, and takes into account
anticipated navigational delays due to the high water conditions on
the Mississippi River. For the 2008 year, we are increasing our
guidance range to $2.74 to $2.89 per share, reflecting a 20% to 26%
increase over the 2007 net earnings of $2.29 per share. Our 2008
capital spending guidance remains at $150 to $160 million, which
includes approximately $80 million for the construction of new tank
barges and towboats." Conference Call A conference call is
scheduled at 10:00 a.m. central time tomorrow, Thursday, April 24,
2008, to discuss the 2008 first quarter performance as well as the
outlook for the 2008 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 at 1:00 p.m. central time on Thursday,
April 24, through 5:00 p.m. central time on Friday, May 23, by
dialing 800-642-1687 for domestic and 706-645-9291 for
international callers. The conference ID number is 42922388. The
conference call can also be accessed by visiting Kirby's web site
at http://www.kirbycorp.com/or at
http://audioevent.mshow.com/343777/. 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
with GAAP net earnings 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
2007 and 2006 years and quarters are available at Kirby's web site,
http://www.kirbycorp.com/, under the caption Performance
Measurements in the Investor Relations section. About Kirby
Corporation 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, 2007 filed with the Securities and Exchange
Commission. A summary of the results for the first quarter follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS First Quarter 2008
2007 (unaudited, $ in thousands except per share amounts) Revenues:
Marine transportation $261,228 $209,065 Diesel engine services
69,342 65,146 330,570 274,211 Costs and expenses: Costs of sales
and operating expenses 208,346 175,599 Selling, general and
administrative 32,872 30,506 Taxes, other than on income 3,533
3,134 Depreciation and amortization 22,327 19,587 Loss on
disposition of assets 58 499 267,136 229,325 Operating income
63,434 44,886 Other expense (257) (150) Interest expense (3,782)
(5,154) Earnings before taxes on income 59,395 39,582 Provision for
taxes on income (22,748) (15,160) Net earnings $36,647 $24,422 Net
earnings per share of common stock: Basic $0.69 $0.46 Diluted $0.68
$0.46 Common stock outstanding (in thousands): Basic 53,222 52,713
Diluted 54,051 53,591 CONDENSED CONSOLIDATED FINANCIAL INFORMATION
First Quarter 2008 2007 (unaudited, $ in thousands) EBITDA: (1) Net
earnings $36,647 $24,422 Interest expense 3,782 5,154 Provision for
taxes on income 22,748 15,160 Depreciation and amortization 22,327
19,587 $85,504 $64,323 Capital expenditures $48,753 $53,649
Acquisitions of businesses and marine equipment $1,800 $47,317
March 31, 2008 2007 (unaudited, $ in thousands) Long-term debt,
including current portion $283,230 $360,574 Stockholders' equity
$807,435 $661,045 Debt to capitalization ratio 26.0% 35.3% MARINE
TRANSPORTATION STATEMENTS OF EARNINGS First Quarter 2008 2007
(unaudited, $ in thousands) Marine transportation revenues $261,228
$209,065 Costs and expenses: Costs of sales and operating expenses
159,649 128,830 Selling, general and administrative 22,308 20,480
Taxes, other than on income 3,235 2,878 Depreciation and
amortization 20,520 18,316 205,712 170,504 Operating income $55,516
$38,561 Operating margins 21.3% 18.4% DIESEL ENGINE SERVICES
STATEMENTS OF EARNINGS First Quarter 2008 2007 (unaudited, $ in
thousands) Diesel engine services revenues $69,342 $65,146 Costs
and expenses: Costs of sales and operating expenses 48,697 46,769
Selling, general and administrative 7,832 7,310 Taxes, other than
on income 274 244 Depreciation and amortization 1,434 926 58,237
55,249 Operating income $11,105 $9,897 Operating margins 16.0%
15.2% OTHER COSTS AND EXPENSES First Quarter 2008 2007 (unaudited,
$ in thousands) General corporate expenses $3,129 $3,073 Loss on
disposition of assets $58 $499 MARINE TRANSPORTATION PERFORMANCE
MEASUREMENTS First Quarter 2008 2007 Ton Miles (in millions) (2)
3,806 3,777 Revenue/Ton Mile (cents/tm) (3) 6.6 5.3 Towboats
operated (average) (4) 260 248 Delay Days (5) 2,998 2,600 Average
cost per gallon of fuel consumed $2.71 $1.71 Tank barges: Active
912 913 Inactive 63 52 Barrel Capacities (in millions): Active 17.3
17.3 Inactive 1.2 .9 (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 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: First
quarter 2008 inland marine revenues of $251,696,000 divided by
3,806,000,000 marine transportation ton miles = 6.6 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.
DATASOURCE: Kirby Corporation CONTACT: Steve Holcomb of Kirby
Corporation, +1-713-435-1135 Web site: http://www.kirbycorp.com/
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