Kirby Corp. (KEX, Financial) filed Quarterly Report for the period ended 2010-03-31.
Kirby Corp. has a market cap of $2.2 billion; its shares were traded at around $40.68 with a P/E ratio of 17.5 and P/S ratio of 2. 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, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
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 a reduction 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 22% through early retirements, staff reductions and employee attrition.
The Company continued to generate strong operating cash flow during the 2010 first quarter, with net cash provided by operating activities of $56,591,000 compared with net cash provided by operating activities for the 2009 first quarter of $81,445,000. The 31% decrease was primarily from an increase in trade accounts receivable during the 2010 first quarter due to stronger revenues. The 2009 first quarter included a 19% decrease in trade accounts receivable due to lower revenues associated with lower business activity levels. In addition, during the 2010 and 2009 first quarters, the Company generated cash of $297,000 and $753,000, respectively, from the exercise of stock options and $1,897,000 and $672,000, respectively, from proceeds from the disposition of assets. For the 2010 first quarter, cash generated was used for capital expenditures of $34,423,000, including $21,089,000 for new tank barge and towboat construction and $13,334,000 primarily for upgrading the existing marine transportation fleet. The Company s debt-to-capitalization ratio decreased to 15.6% at March 31, 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 quarter of $24,674,000, exercise of stock options and the amortization of unearned equity compensation. As of March 31, 2010, the Company had no outstanding balance under its $250,000,000 revolving credit facility and had $121,364,000 of cash and cash equivalents.
The Company projects that capital expenditures for 2010 will be in the $125,000,000 to $135,000,000 range, including approximately $60,000,000 for new tank barge and towboat construction, taking advantage of current attractive tank barge construction prices. For 2010, new construction commitments from 2007 and 2008 orders include six tank barges with a total capacity of 118,000 barrels and three 1800 towboats. New construction for 2010 will also include 55 barges, with a total capacity of 665,000 barrels, ordered in late 2009 for delivery throughout 2010 and early 2011. During the 2010 first quarter, the Company took delivery of 18 new tank barges with a total capacity of 226,000 barrels, and one 1800 horsepower towboat. During the 2010 first quarter, the Company also retired 20 tank barges, reducing its capacity by 365,000 barrels.
The Company reported first quarter 2010 net earnings attributable to Kirby of $24,674,000, or $.46 per share, on revenues of $268,253,000, compared with 2009 first quarter net earnings attributable to Kirby of $28,006,000, or $.52 per share, on revenues of $277,661,000.
Marine transportation revenues for the 2010 first quarter were $219,562,000, or 82% of total revenues, compared with $219,021,000, or 79% of total revenues, for the 2009 first quarter. Diesel engine services revenues for the 2010 first quarter were $48,691,000, or 18% of total revenues, compared with $58,640,000, or 21% of total revenues, for the 2009 first quarter.
Read the The complete Report
Kirby Corp. has a market cap of $2.2 billion; its shares were traded at around $40.68 with a P/E ratio of 17.5 and P/S ratio of 2. 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, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
For the 2010 first quarter, net earnings attributable to Kirby were $24,674,000, or $.46 per share, on revenues of $268,253,000, compared with 2009 first quarter net earnings attributable to Kirby of $28,006,000, or $.52 per share, on revenues of $277,661,000. The 2010 first quarter 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 most of 2009. The higher demand and resulting higher equipment utilization was the result of improved petrochemical production and plant outages. Offsetting the higher demand were lower spot contract and term contract rates negotiated throughout 2009, during a period of industry wide lower demand, lower equipment utilization and tank barge overcapacity. The diesel engine services market reflected continued weak service levels and directs parts sales across the majority of the marine markets, 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 a reduction 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 22% through early retirements, staff reductions and employee attrition.
The Company continued to generate strong operating cash flow during the 2010 first quarter, with net cash provided by operating activities of $56,591,000 compared with net cash provided by operating activities for the 2009 first quarter of $81,445,000. The 31% decrease was primarily from an increase in trade accounts receivable during the 2010 first quarter due to stronger revenues. The 2009 first quarter included a 19% decrease in trade accounts receivable due to lower revenues associated with lower business activity levels. In addition, during the 2010 and 2009 first quarters, the Company generated cash of $297,000 and $753,000, respectively, from the exercise of stock options and $1,897,000 and $672,000, respectively, from proceeds from the disposition of assets. For the 2010 first quarter, cash generated was used for capital expenditures of $34,423,000, including $21,089,000 for new tank barge and towboat construction and $13,334,000 primarily for upgrading the existing marine transportation fleet. The Company s debt-to-capitalization ratio decreased to 15.6% at March 31, 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 quarter of $24,674,000, exercise of stock options and the amortization of unearned equity compensation. As of March 31, 2010, the Company had no outstanding balance under its $250,000,000 revolving credit facility and had $121,364,000 of cash and cash equivalents.
The Company projects that capital expenditures for 2010 will be in the $125,000,000 to $135,000,000 range, including approximately $60,000,000 for new tank barge and towboat construction, taking advantage of current attractive tank barge construction prices. For 2010, new construction commitments from 2007 and 2008 orders include six tank barges with a total capacity of 118,000 barrels and three 1800 towboats. New construction for 2010 will also include 55 barges, with a total capacity of 665,000 barrels, ordered in late 2009 for delivery throughout 2010 and early 2011. During the 2010 first quarter, the Company took delivery of 18 new tank barges with a total capacity of 226,000 barrels, and one 1800 horsepower towboat. During the 2010 first quarter, the Company also retired 20 tank barges, reducing its capacity by 365,000 barrels.
The Company reported first quarter 2010 net earnings attributable to Kirby of $24,674,000, or $.46 per share, on revenues of $268,253,000, compared with 2009 first quarter net earnings attributable to Kirby of $28,006,000, or $.52 per share, on revenues of $277,661,000.
Marine transportation revenues for the 2010 first quarter were $219,562,000, or 82% of total revenues, compared with $219,021,000, or 79% of total revenues, for the 2009 first quarter. Diesel engine services revenues for the 2010 first quarter were $48,691,000, or 18% of total revenues, compared with $58,640,000, or 21% of total revenues, for the 2009 first quarter.
Read the The complete Report
