Kirby Corporation · NYSE:KEX
Kirby — Investor Presentation (May 2006)
32 slides from Kirby's investor presentation, May 9, 2006
Slide 1: Kirby Corporation: Putting America's Waterways to Work
Kirby Corporation Putting America’s Waterways to Work NYSE: KEX May
Slide 2: Forward Looking Statement and Non-GAAP Financial Measures
Statements contained in this presentation with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgement with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those
Slide 3: Kirby Business Operations
Marine Transportation 86% of 2005 Revenue - $686.0 million Largest U.S. Inland Tank Barge Operator Diesel Engine Services 14% of 2005 Revenue - $109.7 million Largest Domestic EMD Diesel Services Company Kirby... Business Operations
Slide 4: Kirby Public Market Facts
NYSE: K E X $79.11 26.4M $2,085M $200M $2,285M 2,450 Current Price (May 5, 2006) Number of Shares O/S Market Capitalization Debt (March 31, 2006) Enterprise Value Employees Kirby…Public Market Facts
Slide 5: Kirby Facts
– Lowest cost due to economies of scale – Best positioned for growth opportunities – “One Stop Shop” for customers Kirby Facts • Largest inland tank barge operator • Operates 893 barges and 239 towing vessels • Sustainable competitive advantages: • 70% of Kirby’s business is under contract, 30% spot
Slide 6: Revenue growth
17% growth rate from 1988-2005 Revenue... Business Operations
Slide 7: Earnings Per Share
1994-2001 adjusted to exclude goodwill amortization expense 2002 adjusted to exclude impairment charges of $12.5 million, net of taxes, or $.51 per share See Appendix for reconciliation of GAAP to Non-GAAP earnings per share Earnings Per Share From Continuing Operations Before Adjustments Guidance 1
Slide 8: Industry Facts
Industry Facts • Approximately 17,800 dry cargo barges, 2,800 liquid tank barges. Kirby in the liquid cargo business only. • No competition from foreign companies due to a U.S. law known as the Jones Act • Always a market to move product by barge on inland waterways • Equipment not subject to econom
Slide 9: Number of Inland Tank Barges
For the years 1993 through single hull tank barges industry wide, operated by Kirby Number of Inland Tank Barges
Slide 10: Inland Tank Barge Fleet
Source: Informa Economics, Barge Fleet Profile, March 2006 Inland Tank Barge Fleet
Slide 11: Kirby Inland Marine
KIRBY INLAND MARINE
Slide 12: Largest Inland Tank Barge Operator
Petrochemicals – 67% Black Oil Products – 20% Agricultural Chemicals – 4% Refined Products – 9% • Benzene • Styrene • Methanol • Acrylonitrile • Xylene • Caustic soda • Butadiene • Propylene • Residual fuel • No. 6 fuel oil • Coker feed • Vacuum gas • Asphalt • Anhydrous ammonia • Nitrogen-b ased li
Slide 13: Fleet Size and Diversity: Better Asset Utilization
– More backhaul opportunities – Faster barge turnarounds – More efficient use of horsepower – Barges positioned closer to cargos – Enhanced purchasing power – Minimal incremental G&A from fleet additions – Less cleaning due to more barges with compatible prior cargos Fleet Size and Diversity… Better
Slide 14: Tank Barge Owners by Number of Tank Barges
Informa Economics, Barge Fleet Profile, March 2006 - Adjusted Tank Barge Owners By Number of Tank Barges Shipper Owned Independent Tank Barges Operated Dry Cargo Barges Operated Kirby Corporation - American Commercial Lines LLC 2,803 Marathon Ashland Petroleum - Canal Barge Company, Inc. Ingram Barg
Slide 15: End Uses of Products and Demand Drivers
Revenue Distribution Products Moved Products Drivers 67% Petrochemicals and Chemicals Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Caustic Soda, Butadiene, Propylene Housing, Consumer Goods, Autos, Clothing 20% Black Oil Products Residual Fuel, No. 6 Fuel Oil, Coker Feed, Vacuum Gas, Asphalt R
Slide 16: Strong Emphasis on Safety
– Extensive company-owned and operated training facility – Seamen’s Church Institute (Towboat Simulator) – First winner of Benkert Award, highest award given by Department of Transportation for safety and environmental protection • Committed to dedicating adequate resources to achieve safety objecti
Slide 17: Kirby Engine Systems
Kirby Engine Systems
Slide 18: Diesel Engine Services Markets
– Inland River Carriers – Dry and Liquid – Offshore Towing – Dry and Liquid – Offshore Oilfield Services – Drilling Rigs & Supply Boats – Harbor Towing – Dredging – Great Lakes Ore Carriers – Standby Power Generation – Pumping Stations – Industrial Reduction Gears – Passenger (Transit Systems) – Cla
Slide 19: Services
Bearing and element replacement Case welding and machining Line boring Alignment Overhauls Component repair Block welding Line boring Remanufacture engines Troubleshooting Genuine OEM new parts Kirby remanufactured parts Nuclear dedication services Replacement Parts Engine Repair Reduction Gear Repa
Slide 20: Acquisitions and Internal Growth
Acquisitions 1987 1991 1995 1996 1997 2000 2000 2004 2005 2006 Internal Growth 1989 1992 1993 2000 2001 National Marine Ewing Diesel Percle Enterprises MKW Power Systems Crowley (Power Assembly Shop) West Kentucky Machine Shop Powerway Walker Paducah Corp. TECO (Diesel Services Division) Global Powe
Slide 21: Market Conditions
Market Conditions
Slide 22: First Quarter Market Conditions
• Record revenues, net earnings, earnings per share and EBITDA • Petrochemical and black oil products markets remained strong • Favorable winter weather conditions positively impacted financial results, with delay days down 25% when compared with 2005 first quarter • Contract rates up 4% to 6%. Spot
Slide 23: Second Quarter and Year Outlook
• 2006 second quarter earnings per share guidance of $.85 to $.90, compared with $.72 for 2006 second quarter • Guidance based on: • Marine transportation operating fundamentals remain strong • Diesel engine services operating fundamental strong; however, will not include seasonal work for Midwest a
Slide 24: Financial Highlights
Financial Highlights
Slide 25: For Year Ended December 31, 2005
For Year Ended December 31, 2005
Slide 26: For First Quarter Ended March 31, 2006
For First Quarter Ended March 31, 2006
Slide 27: 11.7%! 10.0% 10.1% 10.1% 05% 9.7% B% ‘2000 2001 2002 2005
11.7%! 10.0% 10.1% 10.1% 05% 9.7% B% ‘2000 2001 2002 203 204 2005
Slide 28: Cash Flows
* Excluding acquisitions $28 Expansion Barges Cash Flows
Slide 29: Debt / Capitalization
25.9% 57.3% Debt / Capitalization
Slide 30: Assets and Liabilities & Equity
Assets Current Assets $ 206M $ 186M $ 20M Property & Equipment 668 642 ra) Goodwill 165 161 4 Other Assets Total Assets D) Liabilities & Equity Current Liabilities $ 148M —-$ 140M $ Total Debt 201 200 1 Other Liabilities 146 148 () ‘Stockholders’ Equity _573 _538 _35 Total Liabilities & Equity
Slide 31: Financial Strength
– Standard & Poor’s – BBB+ – Moody’s – Baa3 – $200 million outstanding – – No required principal payments until Floating rate of LIBOR +0.5% – Accordion feature added to allow maximum amount to increase to $225 million without amendment – $150 million of interest rate swaps • Investment grade public
Slide 32: Thank You For Listening to Our Story
Thank You For Listening to Our Story Kirby Corporation Putting America’s Waterways to Work