Kirby Corp. (KEX, Financial) filed Quarterly Report for the period ended 2010-06-30.
Kirby Corp. has a market cap of $2.08 billion; its shares were traded at around $38.53 with a P/E ratio of 17.28 and P/S ratio of 1.92. Kirby Corp. had an annual average earning growth of 12% over the past 10 years. GuruFocus rated Kirby Corp. the business predictability rank of 4-star.KEX is in the portfolios of Chuck Royce of Royce& Associates, PRIMECAP Management.
As a result of the lower demand during the 2008 fourth quarter and 2009 year in both the marine transportation and diesel engine services segments, the Company took specific steps during 2009 to reduce overhead and lower expenditures, including reductions in its shore staff. During the 2010 first quarter, the Company continued its cost reduction initiatives by further reducing its marine transportation and corporate overhead costs through retirements and staff reductions, incurring a charge of $4,072,000 before taxes, or $.05 per share. Since its peak headcount in October 2008, the Company has reduced its shore staff by 23% through retirements, staff reductions and employee attrition.
The Company continued to generate strong operating cash flow during the 2010 first six months, with net cash provided by operating activities of $103,039,000 compared with net cash provided by operating activities for the 2009 first six months of $151,558,000. The 2010 first six months experienced a net decrease in cash flows from changes in operating assets and liabilities of $6,815,000 compared with a net increase in the 2009 first six months of $21,176,000, primarily due to a decrease in receivables in the 2009 first six months as a result of decreased revenues due to weaker business activity levels. In addition, during the 2010 and 2009 first six months, the Company generated cash of $3,671,000 and $1,532,000, respectively, from the exercise of stock options, and $6,223,000 and $886,000, respectively, from proceeds from the disposition of assets. For the 2010 first six months, cash generated was used primarily for capital expenditures of $67,637,000, including $34,710,000 for new tank barge and towboat construction and $32,927,000 primarily for upgrading the existing marine transportation fleet. The Companys debt-to-capitalization ratio decreased to 15.2% at June 30, 2010 from 15.9% at December 31, 2009, primarily due to the increase in equity from net earnings attributable to Kirby for the 2010 first six months of $53,942,000, exercise of stock options and the amortization of unearned equity compensation. As of June 30, 2010, the Company had no outstanding balance under its $250,000,000 revolving credit facility and had $140,751,000 of cash and cash equivalents.
The Company projects that capital expenditures for 2010 will be in the $135,000,000 to $145,000,000 range, including approximately $70,000,000 for new tank barge and towboat construction, taking advantage of current attractive tank barge construction prices, and prepayments on 2011 new tank barge construction. For 2010, new construction commitments from 2007 and 2008 orders include six tank barges with a total capacity of 121,000 barrels and three 1800 horsepower towboats. New construction for 2010 will also include 55 tank barges, with a total capacity of 676,000 barrels, ordered in late 2009 for delivery throughout 2010 and early 2011. During the 2010 first six months, the Company took delivery of 32 new tank barges with a total capacity of 405,000 barrels, and two 1800 horsepower towboats. During the 2010 first six months, the Company also chartered five new tank barges with 57,000 barrels of capacity and retired 40 tank barges, reducing its capacity by 643,000 barrels. Based on current commitments, steel prices and projected delivery schedules, the Companys 2011 new construction capital expenditures consists of 25 new tank barges with a total capacity of 700,000 barrels in the $50,000,000 to $60,000,000 range.
The Company reported 2010 second quarter net earnings attributable to Kirby of $29,268,000, or $.54 per share, on revenues of $273,669,000, compared with 2009 second quarter net earnings attributable to Kirby of $33,719,000, or $.63 per share, on revenues of $272,743,000. Net earnings attributable to Kirby for the 2010 first six months were $53,942,000, or $1.00 per share, on revenues of $541,922,000, compared with $61,725,000, or $1.15 per share, on revenues of $550,404,000 for the 2009 first six months.
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Kirby Corp. has a market cap of $2.08 billion; its shares were traded at around $38.53 with a P/E ratio of 17.28 and P/S ratio of 1.92. Kirby Corp. had an annual average earning growth of 12% over the past 10 years. GuruFocus rated Kirby Corp. the business predictability rank of 4-star.KEX is in the portfolios of Chuck Royce of Royce& Associates, PRIMECAP Management.
Highlight of Business Operations:
For the 2010 second quarter, net earnings attributable to Kirby were $29,268,000, or $.54 per share, on revenues of $273,669,000, compared with 2009 second quarter net earnings attributable to Kirby of $33,719,000, or $.63 per share, on revenues of $272,743,000. For the 2010 first six months, net earnings attributable to Kirby were $53,942,000, or $1.00 per share, on revenues of $541,922,000, compared with the 2009 first six months net earnings attributable to Kirby of $61,725,000, or $1.15 per share, on revenues of $550,404,000. The 2010 second quarter and first six months performance, as measured by volumes moved and tank barges utilized, reflected improved business levels in the majority of the marine transportation markets when compared with the four quarters of 2009. The higher demand and resulting higher equipment utilization reflected modestly higher United States refinery and petrochemical production during the 2010 first half, as well as supply chain disruptions caused by plant outages during the 2010 first quarter. Offsetting the higher demand were lower term contract and spot contract rates negotiated throughout 2009 and the 2010 first half, during a recessionary period of industry wide lower demand, lower equipment utilization and tank barge overcapacity. Business levels in the diesel engine services segments marine markets remained weak, particularly the Gulf Coast oil services market as customers continue to defer major maintenance projects, but were partially offset by a continued stable power generation market and an improved railroad market when compared with 2009 demand.As a result of the lower demand during the 2008 fourth quarter and 2009 year in both the marine transportation and diesel engine services segments, the Company took specific steps during 2009 to reduce overhead and lower expenditures, including reductions in its shore staff. During the 2010 first quarter, the Company continued its cost reduction initiatives by further reducing its marine transportation and corporate overhead costs through retirements and staff reductions, incurring a charge of $4,072,000 before taxes, or $.05 per share. Since its peak headcount in October 2008, the Company has reduced its shore staff by 23% through retirements, staff reductions and employee attrition.
The Company continued to generate strong operating cash flow during the 2010 first six months, with net cash provided by operating activities of $103,039,000 compared with net cash provided by operating activities for the 2009 first six months of $151,558,000. The 2010 first six months experienced a net decrease in cash flows from changes in operating assets and liabilities of $6,815,000 compared with a net increase in the 2009 first six months of $21,176,000, primarily due to a decrease in receivables in the 2009 first six months as a result of decreased revenues due to weaker business activity levels. In addition, during the 2010 and 2009 first six months, the Company generated cash of $3,671,000 and $1,532,000, respectively, from the exercise of stock options, and $6,223,000 and $886,000, respectively, from proceeds from the disposition of assets. For the 2010 first six months, cash generated was used primarily for capital expenditures of $67,637,000, including $34,710,000 for new tank barge and towboat construction and $32,927,000 primarily for upgrading the existing marine transportation fleet. The Companys debt-to-capitalization ratio decreased to 15.2% at June 30, 2010 from 15.9% at December 31, 2009, primarily due to the increase in equity from net earnings attributable to Kirby for the 2010 first six months of $53,942,000, exercise of stock options and the amortization of unearned equity compensation. As of June 30, 2010, the Company had no outstanding balance under its $250,000,000 revolving credit facility and had $140,751,000 of cash and cash equivalents.
The Company projects that capital expenditures for 2010 will be in the $135,000,000 to $145,000,000 range, including approximately $70,000,000 for new tank barge and towboat construction, taking advantage of current attractive tank barge construction prices, and prepayments on 2011 new tank barge construction. For 2010, new construction commitments from 2007 and 2008 orders include six tank barges with a total capacity of 121,000 barrels and three 1800 horsepower towboats. New construction for 2010 will also include 55 tank barges, with a total capacity of 676,000 barrels, ordered in late 2009 for delivery throughout 2010 and early 2011. During the 2010 first six months, the Company took delivery of 32 new tank barges with a total capacity of 405,000 barrels, and two 1800 horsepower towboats. During the 2010 first six months, the Company also chartered five new tank barges with 57,000 barrels of capacity and retired 40 tank barges, reducing its capacity by 643,000 barrels. Based on current commitments, steel prices and projected delivery schedules, the Companys 2011 new construction capital expenditures consists of 25 new tank barges with a total capacity of 700,000 barrels in the $50,000,000 to $60,000,000 range.
The Company reported 2010 second quarter net earnings attributable to Kirby of $29,268,000, or $.54 per share, on revenues of $273,669,000, compared with 2009 second quarter net earnings attributable to Kirby of $33,719,000, or $.63 per share, on revenues of $272,743,000. Net earnings attributable to Kirby for the 2010 first six months were $53,942,000, or $1.00 per share, on revenues of $541,922,000, compared with $61,725,000, or $1.15 per share, on revenues of $550,404,000 for the 2009 first six months.
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