Kirby Corp. (KEX, Financial) filed Annual Report for the period ended 2011-12-31.
Kirby Corp has a market cap of $3.8 billion; its shares were traded at around $68.57 with a P/E ratio of 20.5 and P/S ratio of 2.1. Kirby Corp had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated Kirby Corp the business predictability rank of 4.5-star.
The Companys diesel engine services segments 2011 revenue and operating income increased 237% and 231%, respectively, compared with 2010. The increases primarily reflected the acquisition of United on April 15, 2011, as United benefited from the strong demand for the manufacture and service of hydraulic fracturing equipment to meet the increased North American shale gas and crude oil production, and from the sale and service of transmissions and diesel engines and manufacture of compression systems. In addition, the increase in revenues and operating income reflected a strong medium-speed power generation market with engine-generator set upgrade projects and higher parts and engine sales and the improved inland liquid and dry marine markets, partially offset by continued weak service levels and direct parts sales in both the medium-speed and high-speed Gulf Coast oil services market.
The Company continued to generate strong operating cash flows during 2011 with net cash provided by operating activities of $311,995,000 compared with net cash provided by operating activities for 2010 of $245,246,000. The 27% increase for 2011 was primarily from higher net earnings attributable to Kirby, higher depreciation and amortization and a higher deferred tax provision in 2011 versus 2010, partially offset by a larger net decrease in cash flows from changes in operating assets and liabilities of $67,100,000, primarily due to increased receivables and inventories associated with the stronger business activity levels and a larger pension contribution in 2011 compared to 2010. In addition, during 2011 and 2010, the Company generated cash of $4,367,000 and $4,884,000, respectively, from the exercise of stock options, and $11,821,000 and $9,725,000, respectively, from proceeds from the disposition of assets.
During 2010, approximately 75% of marine transportation revenues were under term contracts and 25% were spot contract revenues, compared with 80% under term contracts and 20% under spot contracts during the 2009 first nine months. The percentage applicable to term contracts declined beginning in the fourth quarter of 2009 as certain customers switched to spot contracts, and in some cases, short-term charters when their term contracts expired. Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 52% of the revenues under term contracts during 2010 compared with approximately 56% during 2009. The 75% to 80% term contract and 20% to 25% spot contract mix provides the Company with a predictable revenue stream.
The Company generated net cash provided by operating activities of $311,995,000, $245,246,000 and $319,885,000 for the years ended December 31, 2011, 2010 and 2009, respectively. The 2011 year experienced a net decrease in cash flows from changes in operating assets and liabilities of $79,618,000 primarily due to larger increases in trade accounts receivable and inventory from stronger business activity levels in 2011 versus 2010 and a pension contribution of $27,500,000 in December 2011. The 2010 year experienced a net decrease in cash flows from changes in operating assets and liabilities of $12,518,000, primarily due to increased receivables from stronger business activities levels and a federal income tax receivable as of December 31, 2010 of $11,138,000, the result of the Small Business Act that included a one-year extension of 50% bonus tax depreciation on qualified property. This extension was made after the Company made three quarterly 2010 estimated tax payments based on the assumption that bonus tax depreciation would not be extended and, as a result, the Company overpaid its 2010 estimated federal income taxes. In addition, the Tax Relief Act that was signed on December 17, 2010 provides 100% bonus tax depreciation for capital investments placed in service after September 8, 2010 through December 31, 2011. For equipment placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50% bonus tax depreciation. This compares with a net increase in cash flows from changes in operating assets and liabilities in the 2009 year of $47,360,000, primarily due to a decrease in receivables during 2009, the result of decreased revenues due to weaker business activity levels. Also impacting 2010 was a pension contribution of $11,900,000 versus none in 2009.
Read the The complete Report
Kirby Corp has a market cap of $3.8 billion; its shares were traded at around $68.57 with a P/E ratio of 20.5 and P/S ratio of 2.1. Kirby Corp had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated Kirby Corp the business predictability rank of 4.5-star.
Highlight of Business Operations:
During 2011, approximately 75% of the inland marine transportation revenues were under term contracts and 25% were spot contract revenues. Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 55% of the inland revenues under term contracts during 2011 compared with 52% during 2010. Inland term contract rates renewed in the 2011 first, second, third and fourth quarters increased an average of 2% to 4%, 3% to 5%, 7% to 9% and 4% to 6%, respectively, when compared with term contract rate renewals in the corresponding quarters of 2010. Spot contract rates in the 2011 first quarter, which include the cost of fuel, increased an average of 5% to 7% compared with the 2010 fourth quarter and spot market rates for the 2011 second quarter increased an average of 7% to 9% compared with the 2011 first quarter, partially due to the high water and flooding during the quarter that increased industry wide equipment utilization levels. Spot contracts rates for the 2011 third quarter increased an average of 9% to 11% compared with the 2011 second quarter. Spot contracts rates for the 2011 fourth quarter increased an average of 7% to 9% compared with the 2011 third quarter. Effective January 1, 2011, annual escalators for labor and the producer price index on a number of multi-year contracts resulted in rate increases on those contracts by 1% to 2%, excluding fuel.The Companys diesel engine services segments 2011 revenue and operating income increased 237% and 231%, respectively, compared with 2010. The increases primarily reflected the acquisition of United on April 15, 2011, as United benefited from the strong demand for the manufacture and service of hydraulic fracturing equipment to meet the increased North American shale gas and crude oil production, and from the sale and service of transmissions and diesel engines and manufacture of compression systems. In addition, the increase in revenues and operating income reflected a strong medium-speed power generation market with engine-generator set upgrade projects and higher parts and engine sales and the improved inland liquid and dry marine markets, partially offset by continued weak service levels and direct parts sales in both the medium-speed and high-speed Gulf Coast oil services market.
The Company continued to generate strong operating cash flows during 2011 with net cash provided by operating activities of $311,995,000 compared with net cash provided by operating activities for 2010 of $245,246,000. The 27% increase for 2011 was primarily from higher net earnings attributable to Kirby, higher depreciation and amortization and a higher deferred tax provision in 2011 versus 2010, partially offset by a larger net decrease in cash flows from changes in operating assets and liabilities of $67,100,000, primarily due to increased receivables and inventories associated with the stronger business activity levels and a larger pension contribution in 2011 compared to 2010. In addition, during 2011 and 2010, the Company generated cash of $4,367,000 and $4,884,000, respectively, from the exercise of stock options, and $11,821,000 and $9,725,000, respectively, from proceeds from the disposition of assets.
During 2010, approximately 75% of marine transportation revenues were under term contracts and 25% were spot contract revenues, compared with 80% under term contracts and 20% under spot contracts during the 2009 first nine months. The percentage applicable to term contracts declined beginning in the fourth quarter of 2009 as certain customers switched to spot contracts, and in some cases, short-term charters when their term contracts expired. Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 52% of the revenues under term contracts during 2010 compared with approximately 56% during 2009. The 75% to 80% term contract and 20% to 25% spot contract mix provides the Company with a predictable revenue stream.
The Company generated net cash provided by operating activities of $311,995,000, $245,246,000 and $319,885,000 for the years ended December 31, 2011, 2010 and 2009, respectively. The 2011 year experienced a net decrease in cash flows from changes in operating assets and liabilities of $79,618,000 primarily due to larger increases in trade accounts receivable and inventory from stronger business activity levels in 2011 versus 2010 and a pension contribution of $27,500,000 in December 2011. The 2010 year experienced a net decrease in cash flows from changes in operating assets and liabilities of $12,518,000, primarily due to increased receivables from stronger business activities levels and a federal income tax receivable as of December 31, 2010 of $11,138,000, the result of the Small Business Act that included a one-year extension of 50% bonus tax depreciation on qualified property. This extension was made after the Company made three quarterly 2010 estimated tax payments based on the assumption that bonus tax depreciation would not be extended and, as a result, the Company overpaid its 2010 estimated federal income taxes. In addition, the Tax Relief Act that was signed on December 17, 2010 provides 100% bonus tax depreciation for capital investments placed in service after September 8, 2010 through December 31, 2011. For equipment placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50% bonus tax depreciation. This compares with a net increase in cash flows from changes in operating assets and liabilities in the 2009 year of $47,360,000, primarily due to a decrease in receivables during 2009, the result of decreased revenues due to weaker business activity levels. Also impacting 2010 was a pension contribution of $11,900,000 versus none in 2009.
Read the The complete Report
