Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net
earnings attributable to Kirby for the second quarter ended June
30, 2022 of $28.5 million or $0.47 per share, compared with
earnings of $10.2 million, or $0.17 per share for the 2021 second
quarter. Excluding one-time non-recurring items in the 2022 second
quarter, net earnings attributable to Kirby were $29.8 million or
$0.49 per share. Consolidated revenues for the 2022 second quarter
were $698.0 million compared with $559.6 million reported for the
2021 second quarter.
David Grzebinski, Kirby’s President and Chief
Executive Officer, commented, “Both of our segments continued to
improve during the quarter, delivering higher revenue and operating
income sequentially and year-on-year. In the inland marine
transportation market, pricing on spot and term contracts continued
to move higher, with both renewing higher in the mid-teens. We
anticipate continued gradual upward movement in pricing in the
second half of 2022 with late fourth quarter term contract renewals
setting up for a strong 2023. Distribution and services also
performed well as we continued to navigate persistent supply chain
constraints. We continue to expect steady progression in quarterly
earnings as we move through the remainder of 2022.”
Mr. Grzebinski continued, “In our coastal marine
business, overall market conditions steadily improved during the
second quarter, where we did see the few spot contracts that
repriced in the quarter renew higher in the low double digits.
Utilization rates remained in the low 90% range with modest
improvements late in the quarter. These trends, combined with
previously announced cost savings actions, and higher coal
shipments contributed to coastal marine achieving positive
operating margins.”
“In distribution and services, activity remained
strong throughout much of the segment with sequential and
year-on-year revenue and operating income growth. In oil and gas,
we experienced increased demand for new transmissions and received
incremental orders for new environmentally friendly pressure
pumping equipment and frac-related power generation equipment.
However, supply chain constraints continued in the quarter,
delaying deliveries of new manufactured equipment. In commercial
and industrial, demand was solid, with increased year-on-year
activity across our businesses,” Mr. Grzebinski concluded.
Segment Results – Marine
Transportation
Marine transportation revenues for the 2022
second quarter were $405.7 million compared with $332.9 million for
the 2021 second quarter. Operating income for the 2022 second
quarter was $30.8 million compared with $18.5 million for the 2021
second quarter. Segment operating margin for the 2022 second
quarter was 7.6% compared with 5.6% for the 2021 second
quarter.
In the inland market, average 2022 second
quarter barge utilization was in the low 90% range compared to the
low to mid-80% range in the 2021 second quarter. Operating
conditions were fair with limited navigation delays contributing to
a 5% decrease in delay days year-on-year. During the quarter,
average spot market rates increased in the low double digits
sequentially and in the mid-teens compared to the 2021 second
quarter. Term contracts that renewed in the second quarter also
increased in the mid-teens range on average compared to a year ago.
Revenues in the inland market increased 25% compared to the 2021
second quarter primarily due to increased volumes, barge
utilization, pricing, and fuel rebills. Rapidly rising fuel costs
during the quarter were a headwind to margins, resulting in
operating margins just below double digits. As term contracts renew
in the second half of the year and into 2023, we expect to recover
these costs, as well as other inflationary costs. The inland market
represented 78% of segment revenues in the second quarter of
2022.
In coastal, market conditions improved modestly
during the quarter, with Kirby’s barge utilization remaining in the
low 90% range. Pricing in the spot market and term contract
renewals also increased in the low double digits sequentially and
year-on-year. Revenues in the coastal market were 12% higher
compared to the 2021 second quarter and represented 22% of segment
revenues. The coastal business had a positive operating margin in
the low-single digits during the quarter.
Segment Results –
Distribution and Services
Distribution and services revenues for the 2022
second quarter were $292.3 million compared with $226.7 million for
the 2021 second quarter. Operating income for the 2022 second
quarter was $16.7 million compared with $6.2 million for the 2021
second quarter. Operating margin was 5.7% for the 2022 second
quarter compared with 2.7% for the 2021 second quarter.
In the commercial and industrial market,
revenues and operating income increased compared to the 2021 second
quarter, primarily due to strong economic activity across the U.S.
which resulted in higher business levels in marine repair and
on-highway. Increased product sales in Thermo King also contributed
favorably to year-on-year growth but revenues continued to be
negatively impacted by supply chain constraints and delays.
Overall, commercial and industrial revenues increased 15% compared
to the 2021 second quarter and represented approximately 55% of
segment revenues. Commercial and industrial operating margins were
in the high-single digits.
In the oil and gas market, revenues and
operating income improved compared to the 2021 second quarter
driven by higher oilfield activity which resulted in increased
demand for new transmissions and parts in the distribution
business. Even though manufacturing continues to be heavily
impacted by supply chain delays, the business experienced increased
year-on-year demand with incremental orders and deliveries of new
environmentally friendly pressure pumping equipment and power
generation equipment for electric fracturing. Overall, oil and gas
revenues increased 52% compared to the 2021 second quarter and
represented approximately 45% of segment revenues. Oil and gas
operating margins were in the low to mid-single digits.
Cash Generation
For the 2022 second quarter, Adjusted EBITDA was
$100.2 million compared with $81.5 million for the 2021 second
quarter. During the quarter, net cash provided by operating
activities was $63.4 million, and capital expenditures were $44.0
million. During the quarter, the Company had net proceeds from
asset sales totaling $9.0 million. Kirby also used $18.1 million to
repurchase 310,047 shares at an average price of $58.33. As of June
30, 2022, the Company had $25.1 million of cash and cash
equivalents on the balance sheet and $878.7 million of liquidity
available. Total debt was $1,136.1 million, reflecting a $27.3
million reduction compared to December 31, 2021, and the
debt-to-capitalization ratio improved to 27.9%.
2022 Outlook
Commenting on the 2022 full year outlook, Mr.
Grzebinski said, “We exited the quarter with continued momentum in
our businesses. The marine market continues to gain strength and
while our second quarter results were impacted by higher fuel costs
in marine transportation, we expect to recover these costs during
the second half of the year and into 2023. Refinery utilization is
near historic highs, our barge utilization is strong in both inland
and coastal, and rates are steadily increasing. In distribution and
services, despite persistent supply chain constraints and delays,
demand for our products and services continues to grow, and we
continue to receive new orders in manufacturing. Overall, we see
momentum continuing to build, and we expect our businesses to
deliver improved financial results in the coming quarters. While
all of this is encouraging, we are mindful of economic challenges
related to a potential recession and higher interest rates. Labor
constraints and inflationary pressures continue to contribute to
rising costs across our businesses. In marine, we currently expect
that cost escalators and rate recovery mechanisms in some term
contracts will continue lagging these cost headwinds in the third
quarter and will ultimately be realized later in the year and into
2023. With these factors in mind, we will continue to focus on
managing costs and driving cash flow from operations. In the
near-term, we intend to use this cash flow to reduce debt and
further strengthen our balance sheet as well as opportunistically
return capital to shareholders. Also, consistent with our balanced
approach to capital allocation, we will continue to evaluate
accretive acquisitions and high-return organic growth opportunities
to drive continued long-term shareholder value creation.”
In inland marine, favorable conditions are
expected to continue going forward, driven by high refinery and
petrochemical plant utilization, increased volumes from new
petrochemical plants, and minimal new barge construction across the
industry. With Kirby’s barge utilization expected to be in the low
to mid-90% range and limited new supply in the market, the Company
expects further improvements in the spot market, which currently
represents approximately 40% of inland revenues. Term contracts are
also expected to continue to reset higher to reflect improved
market conditions for the duration of the year. Overall, inland
revenues are expected to grow by 20% to 25% on a full year basis
with continued sequential increases as market conditions remain
tight and term contracts renew higher. Material inflation to costs,
including high fuel prices, are expected to be continued headwinds
but will be mitigated when escalations in contracts occur during
the back half of the year and into 2023. Barring further cost
inflation and rising fuel costs, the Company expects near term
operating margins to be in the low double digits and gradually
improve during the second half of the year.
In coastal marine, Kirby expects modestly
improved customer demand through the balance of the year with
Company barge utilization in the low to mid-90% range. Rates are
expected to continue slowly improving, but meaningful gains remain
challenged by underutilized barge capacity across the industry. For
the full year, with the impact of the Company’s exit from the
Hawaii market, coastal revenues are expected flat to up in the low
single digits compared to 2021. Revenues and operating margins are
expected to be impacted by ongoing planned shipyard maintenance and
ballast water treatment installations on certain vessels, with
offsets from higher coal shipments. Coastal operating margins for
the remainder of the year are expected to remain in the low single
digits.
In distribution and services, favorable oilfield
fundamentals and strong demand in commercial and industrial are
expected to continue in the second half of 2022. In the oil and gas
market, high commodity prices, increasing rig counts, and growing
well completions activity are expected to yield strong demand for
OEM products, parts, and services in the distribution business. In
manufacturing, the Company expects demand for new environmentally
friendly pressure pumping and e-frac power generation equipment to
remain strong, with new orders and increased deliveries of new
equipment during the second half of the year. However, ongoing
supply chain issues and long lead times are expected to persist in
the near-term, contributing to some volatility as deliveries of new
products shift between quarters and into 2023. In commercial and
industrial, strong markets are expected to yield full year revenue
growth in the low double-digit percentage range, with increased
activity in power generation, marine repair, and on-highway. In the
third quarter, the Company expects to benefit from strong seasonal
demand in Thermo King and from the power generation rental fleet.
Overall, the Company expects segment revenues to grow 25% to 30% on
a full year basis with operating margins in the mid to high-single
digits.
Kirby expects 2022 capital spending of between
$170 to $190 million. Approximately $5 million is associated with
the construction of new inland towboats, and approximately $145 to
$155 million is associated with marine maintenance capital and
improvements to existing inland and coastal marine equipment and
facility improvements. The balance of approximately $20 to $30
million largely relates to new machinery and equipment and facility
improvements in distribution and services, as well as information
technology projects in corporate. Overall, Kirby expects to
generate net cash provided by operating activities of $390 million
to $450 million, with free cash flow of $200 million to $280
million in 2022.
Conference Call
A conference call is scheduled for 7:30 a.m.
Central Daylight Time today, Thursday, July 28, 2022, to discuss
the 2022 second quarter performance as well as the outlook for the
remainder of 2022. 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, Adjusted EBITDA, which Kirby defines as net
earnings attributable to Kirby before interest expense, taxes on
income, depreciation and amortization, impairment of long-lived
assets, and impairment of goodwill. A reconciliation of Adjusted
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 also
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 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. 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 2021 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 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, and
the impact of the COVID-19 pandemic on global and regional market
conditions. 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,
2021.
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
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(unaudited, $ in thousands, except per share
amounts) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Marine transportation |
$ |
405,655 |
|
|
$ |
332,887 |
|
|
$ |
761,191 |
|
|
$ |
633,838 |
|
Distribution and services |
|
292,309 |
|
|
|
226,737 |
|
|
|
547,555 |
|
|
|
422,636 |
|
Total revenues |
|
697,964 |
|
|
|
559,624 |
|
|
|
1,308,746 |
|
|
|
1,056,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
523,862 |
|
|
|
409,479 |
|
|
|
974,480 |
|
|
|
772,519 |
|
Selling, general and administrative |
|
70,575 |
|
|
|
62,740 |
|
|
|
146,340 |
|
|
|
132,369 |
|
Taxes, other than on income |
|
9,621 |
|
|
|
10,364 |
|
|
|
19,211 |
|
|
|
18,624 |
|
Depreciation and amortization |
|
50,115 |
|
|
|
55,132 |
|
|
|
100,079 |
|
|
|
110,022 |
|
Gain on disposition of assets |
|
(2,745 |
) |
|
|
(2,119 |
) |
|
|
(7,594 |
) |
|
|
(4,252 |
) |
Total costs and expenses |
|
651,428 |
|
|
|
535,596 |
|
|
|
1,232,516 |
|
|
|
1,029,282 |
|
Operating income |
|
46,536 |
|
|
|
24,028 |
|
|
|
76,230 |
|
|
|
27,192 |
|
Other income |
|
3,740 |
|
|
|
2,523 |
|
|
|
8,048 |
|
|
|
6,314 |
|
Interest expense |
|
(10,640 |
) |
|
|
(10,706 |
) |
|
|
(20,843 |
) |
|
|
(21,672 |
) |
Earnings before taxes on income |
|
39,636 |
|
|
|
15,845 |
|
|
|
63,435 |
|
|
|
11,834 |
|
Provision for taxes on income |
|
(11,030 |
) |
|
|
(5,493 |
) |
|
|
(17,243 |
) |
|
|
(4,602 |
) |
Net earnings |
|
28,606 |
|
|
|
10,352 |
|
|
|
46,192 |
|
|
|
7,232 |
|
Net earnings attributable to noncontrolling interests |
|
(149 |
) |
|
|
(162 |
) |
|
|
(301 |
) |
|
|
(417 |
) |
Net earnings attributable to Kirby |
$ |
28,457 |
|
|
$ |
10,190 |
|
|
$ |
45,891 |
|
|
$ |
6,815 |
|
Net earnings per share attributable to Kirby common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.11 |
|
Diluted |
$ |
0.47 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.11 |
|
Common stock outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
60,202 |
|
|
|
60,053 |
|
|
|
60,188 |
|
|
|
60,035 |
|
Diluted |
|
60,467 |
|
|
|
60,274 |
|
|
|
60,465 |
|
|
|
60,220 |
|
CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(unaudited, $ in thousands) |
|
Adjusted EBITDA: (1) |
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Kirby |
$ |
28,457 |
|
|
$ |
10,190 |
|
|
$ |
45,891 |
|
|
$ |
6,815 |
|
Interest expense |
|
10,640 |
|
|
|
10,706 |
|
|
|
20,843 |
|
|
|
21,672 |
|
Provision for taxes on income |
|
11,030 |
|
|
|
5,493 |
|
|
|
17,243 |
|
|
|
4,602 |
|
Depreciation and amortization |
|
50,115 |
|
|
|
55,132 |
|
|
|
100,079 |
|
|
|
110,022 |
|
|
$ |
100,242 |
|
|
$ |
81,521 |
|
|
$ |
184,056 |
|
|
$ |
143,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
43,984 |
|
|
$ |
24,317 |
|
|
$ |
79,059 |
|
|
$ |
38,369 |
|
Acquisitions of businesses and marine equipment |
$ |
— |
|
|
$ |
7,470 |
|
|
$ |
3,900 |
|
|
$ |
7,470 |
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
(unaudited, $ in thousands) |
|
Cash and cash equivalents |
$ |
25,104 |
|
|
$ |
34,813 |
|
Long-term debt, including current portion |
$ |
1,136,055 |
|
|
$ |
1,163,367 |
|
Total equity |
$ |
2,929,744 |
|
|
$ |
2,888,782 |
|
Debt to capitalization ratio |
|
27.9 |
% |
|
|
28.7 |
% |
MARINE TRANSPORTATION STATEMENTS OF
EARNINGS
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(unaudited, $ in thousands) |
|
Marine transportation revenues |
$ |
405,655 |
|
|
$ |
332,887 |
|
|
$ |
761,191 |
|
|
$ |
633,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
294,343 |
|
|
|
229,959 |
|
|
|
548,702 |
|
|
|
444,084 |
|
Selling, general and administrative |
|
28,294 |
|
|
|
28,272 |
|
|
|
60,630 |
|
|
|
58,850 |
|
Taxes, other than on income |
|
7,990 |
|
|
|
8,677 |
|
|
|
15,810 |
|
|
|
15,406 |
|
Depreciation and amortization |
|
44,211 |
|
|
|
47,501 |
|
|
|
88,297 |
|
|
|
95,080 |
|
Total costs and expenses |
|
374,838 |
|
|
|
314,409 |
|
|
|
713,439 |
|
|
|
613,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
30,817 |
|
|
$ |
18,478 |
|
|
$ |
47,752 |
|
|
$ |
20,418 |
|
Operating margin |
|
7.6 |
% |
|
|
5.6 |
% |
|
|
6.3 |
% |
|
|
3.2 |
% |
DISTRIBUTION AND SERVICES STATEMENTS OF
EARNINGS
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(unaudited, $ in thousands) |
|
Distribution and services revenues |
$ |
292,309 |
|
|
$ |
226,737 |
|
|
$ |
547,555 |
|
|
$ |
422,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of sales and operating expenses |
|
229,196 |
|
|
|
180,096 |
|
|
|
425,715 |
|
|
|
329,223 |
|
Selling, general and administrative |
|
40,653 |
|
|
|
32,987 |
|
|
|
82,575 |
|
|
|
69,475 |
|
Taxes, other than on income |
|
1,590 |
|
|
|
1,658 |
|
|
|
3,318 |
|
|
|
3,150 |
|
Depreciation and amortization |
|
4,133 |
|
|
|
5,840 |
|
|
|
8,239 |
|
|
|
11,721 |
|
Total costs and expenses |
|
275,572 |
|
|
|
220,581 |
|
|
|
519,847 |
|
|
|
413,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
16,737 |
|
|
$ |
6,156 |
|
|
$ |
27,708 |
|
|
$ |
9,067 |
|
Operating margin |
|
5.7 |
% |
|
|
2.7 |
% |
|
|
5.1 |
% |
|
|
2.1 |
% |
OTHER COSTS AND EXPENSES
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(unaudited, $ in thousands) |
|
General corporate expenses |
$ |
3,763 |
|
|
$ |
2,725 |
|
|
$ |
6,824 |
|
|
$ |
6,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of assets |
$ |
(2,745 |
) |
|
$ |
(2,119 |
) |
|
$ |
(7,594 |
) |
|
$ |
(4,252 |
) |
ONE-TIME CHARGES
The 2022 second quarter and 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):
|
Second Quarter 2022 |
|
|
First Six Months 2022 |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Per Share |
|
|
(unaudited, $ in millions except per share
amounts) |
|
GAAP earnings |
$ |
39.6 |
|
|
$ |
28.5 |
|
|
$ |
0.47 |
|
|
$ |
63.4 |
|
|
$ |
45.9 |
|
|
$ |
0.76 |
|
Severance expense |
|
1.5 |
|
|
|
1.3 |
|
|
|
0.02 |
|
|
|
1.5 |
|
|
|
1.3 |
|
|
|
0.02 |
|
Earnings, excluding one-time items(2) |
$ |
41.1 |
|
|
$ |
29.8 |
|
|
$ |
0.49 |
|
|
$ |
64.9 |
|
|
$ |
47.2 |
|
|
$ |
0.78 |
|
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 |
|
|
2022 |
|
|
2021(3) |
|
|
2022 |
|
|
2021(3) |
|
|
(unaudited, $ in millions) |
|
Net cash provided by operating activities |
$ |
63.4 |
|
|
$ |
95.2 |
|
|
$ |
95.6 |
|
|
$ |
197.8 |
|
Less: Capital expenditures |
|
(44.0 |
) |
|
|
(24.3 |
) |
|
|
(79.1 |
) |
|
|
(38.4 |
) |
Free cash flow(2) |
$ |
19.4 |
|
|
$ |
70.9 |
|
|
$ |
16.5 |
|
|
$ |
159.4 |
|
|
FY 2022 Projection |
|
|
FY 2021(3) |
|
|
Low |
|
|
High |
|
|
Actual |
|
|
(unaudited, $ in millions) |
|
|
|
|
Net cash provided by operating activities |
$ |
390.0 |
|
|
$ |
450.0 |
|
|
$ |
321.6 |
|
Less: Capital expenditures |
|
(190.0 |
) |
|
|
(170.0 |
) |
|
|
(98.0 |
) |
Free cash flow(2) |
$ |
200.0 |
|
|
$ |
280.0 |
|
|
$ |
223.6 |
|
MARINE TRANSPORTATION PERFORMANCE
MEASUREMENTS
|
Second Quarter |
|
|
Six Months |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Inland Performance Measurements: |
|
|
|
|
|
|
|
|
|
|
|
Ton Miles (in millions) (4) |
|
3,536 |
|
|
|
3,478 |
|
|
|
6,704 |
|
|
|
6,459 |
|
Revenue/Ton Mile (cents/tm) (5) |
|
9.0 |
|
|
|
7.3 |
|
|
|
8.9 |
|
|
|
7.4 |
|
Towboats operated (average) (6) |
|
270 |
|
|
|
260 |
|
|
|
267 |
|
|
|
251 |
|
Delay Days (7) |
|
2,762 |
|
|
|
2,922 |
|
|
|
5,899 |
|
|
|
5,776 |
|
Average cost per gallon of fuel consumed |
$ |
3.98 |
|
|
$ |
2.06 |
|
|
$ |
3.27 |
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barges (active): |
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
1,034 |
|
|
|
1,046 |
|
Coastal tank barges |
|
|
|
|
|
|
|
30 |
|
|
|
43 |
|
Offshore dry-cargo barges |
|
|
|
|
|
|
|
4 |
|
|
|
4 |
|
Barrel capacities (in millions): |
|
|
|
|
|
|
|
|
|
|
|
Inland tank barges |
|
|
|
|
|
|
|
23.0 |
|
|
|
23.4 |
|
Coastal tank barges |
|
|
|
|
|
|
|
3.1 |
|
|
|
4.0 |
|
(1) |
Kirby has historically evaluated its operating performance using
numerous measures, one of which is Adjusted EBITDA, a non-GAAP
financial measure. Kirby defines Adjusted 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. Adjusted EBITDA is presented because of its
wide acceptance as a financial indicator. Adjusted EBITDA is one of
the performance measures used in Kirby’s incentive bonus plan.
Adjusted 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. Adjusted 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 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. |
(3) |
See Kirby’s 2021 10-K 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 2022 inland marine transportation revenues
of $316.9 million divided by 3,536 million inland marine
transportation ton miles = 9.0 cents. |
(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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