On October 26, 2023, Kirby Corp (KEX, Financial) announced its third-quarter earnings for the year. The company reported net earnings of $63.0 million or $1.05 per share, compared to earnings of $39.1 million, or $0.65 per share for the same period in 2022. Consolidated revenues for Q3 2023 were $764.8 million, a slight increase from $745.8 million reported for Q3 2022.
Performance and Challenges
Kirby's President and CEO, David Grzebinski, commented on the company's performance, stating, "Both of our segments continued to perform well during the quarter despite facing some temporary challenges." He noted that the marine transportation segment benefited from strong demand and limited availability of barges, while the distribution and services segment delivered improved margins despite supply chain delays.
Financial Achievements
Kirby's marine transportation revenues for Q3 2023 were $429.9 million, slightly lower than the $433.0 million reported for Q3 2022. However, the operating income for the same period was $63.5 million, a significant increase from $41.7 million in Q3 2022. The distribution and services segment also saw an improvement in operating income, which rose 49% year-over-year and 11% sequentially.
Income Statement, Balance Sheet, and Cash Flow Statement
For Q3 2023, Kirby reported EBITDA of $148.5 million, compared to $113.0 million for Q3 2022. The company also reported net cash provided by operating activities of $96.3 million, and capital expenditures of $103.8 million. As of September 30, 2023, the company had $42.1 million of cash and cash equivalents on the balance sheet and $450.7 million of liquidity available. Total debt was $1,067.9 million and the debt-to-capitalization ratio was 25.3%.
Company's Performance Analysis
Despite challenges such as the Illinois River closure and several refinery outages, Kirby managed to maintain strong market conditions and high operating margins. The company's strategy of repurchasing stock also contributed to its financial achievements. Looking forward, Kirby expects to continue seeing strong demand in both its segments, which should contribute to improved financial results in 2024.
Other Pertinent Details
Kirby's outlook for Q4 2023 remains positive, with expectations of steady customer demand and increasing rates. The company also anticipates continued demand for its products and services in the distribution and services segment, despite ongoing supply chain constraints and delays.
Explore the complete 8-K earnings release (here) from Kirby Corp for further details.
