Kirby Corporation · NYSE:KEX

Kirby — Q2 2020 Earnings Presentation

12 slides from Kirby's earnings presentation, Jul 30, 2020

  1. Slide 1: 2Q 2020 Earnings Conference Call

    2Q 2020 Earnings Conference Call July 30, 2020

  2. Slide 2: Disclosures

    Disclosures Forward Looking Statements Statements contained in this conference call 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 r

  3. Slide 3: 2Q Overview

    2Q Overview Financial Summary $ millions except earnings (loss) per share 2Q 2020 2Q 2019 Variance % 1Q 2020 Variance % Revenues $ 541.2 $ 771.0 $ (229.8) -30% $ 643.9 $ (102.7) -16% Operating income (loss) 34.3 75.8 (41.5) -55% (509.7) 544.0 107% Net earnings (loss) attributable to Kirby 25.0 47.3

  4. Slide 4: Marine Transportation Overview

    Marine Transportation Overview Overall  Barge markets significantly impacted by COVID-19  Refinery utilization in the high 60% to mid-70% range  Chemical plant utilization declined to ~70%  Significant cost reductions contributed to improved operating margins Inland  Sharp decline in barge util

  5. Slide 5: Distribution & Services Overview

    Distribution & Services Overview Overall  Activity significantly impacted by low commodity prices, reduced economic activity, and stay-at-home orders  Aggressive cost reductions implemented – expect to be fully realized in the third quarter  Severance of $0.02 per share Oil and Gas  Oil and gas

  6. Slide 6: Marine Transportation

    Marine Transportation 2Q 2020 Financial Summary $ millions 2Q 2020 2Q 2019 Variance % 1Q 2020 Variance % Revenue $ 381.0 $ 404.3 $ (23.3) -6% $ 403.3 $ (22.3) -6% Operating income 51.4 53.2 (1.8) -3% 50.7 0.7 1% Operating margin 13.5% 13.2% 0.3% 12.6% 0.9%  Inland – Contributed 80% of marine transp

  7. Slide 7: Barge Construction and Retirements

    Barge Construction and Retirements 2Q 2020 Update and FY 2020 Outlook Inland 2Q 2020 FY 2020 (Estimated) (barrels in millions) Barges Barrels Barges Barrels Beginning of period 1,065 23.7 1,053 23.4 Additions: Savage Inland Marine 92 2.5 92 2.5 Reactivations - - 10 0.3 Purchases 1 - 4 - Reductions:

  8. Slide 8: Distribution & Services

    Distribution & Services 2Q 2020 Financial Summary $ millions 2Q 2020 2Q 2019 Variance % 1Q 2020 Variance % Revenue $ 160.2 $ 366.8 $ (206.6) -56% $ 240.7 $ (80.5) -33% Operating income (loss) (14.1) 23.1 (37.2) -161% 3.7 (17.8) -481% Operating margin -8.8% 6.3% -15.1% 1.5% -10.3%  Oil and gas – Res

  9. Slide 9: Balance Sheet and Liquidity

    Balance Sheet and Liquidity Strong Liquidity and Free Cash Flow Position As of June 30, 2020 Total Cash and Available Debt Cash Equivalents Liquidity $1.64B $108M $537M  Second quarter results: – $170.6 million of net cash provided by operating activities – $43.6 million of capital expenditures – $

  10. Slide 10: 2020 Outlook – Marine Transportation

    2020 Outlook – Marine Transportation Activity appears to have bottomed, but timing of a full recovery remains uncertain  Inland – Barge utilization appears to have stabilized and bottomed as refinery and chemical plant activity has improved; however, a material recovery is not expected until genera

  11. Slide 11: 2020 Outlook – Distribution & Services

    2020 Outlook – Distribution & Services Expect sequential improvement in operating margins in 3Q  Oil and gas – Activity will be extremely challenged through 2020 despite incremental frac activity – Unutilized pressure pumping capacity across the industry will limit a material recovery in new constr

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Kirby — Q2 2020 Earnings Presentation on 6ix