Kirby Corporation · NYSE:KEX
Kirby — Investor Presentation (November 2006)
31 slides from Kirby's investor presentation, Nov 28, 2006
Slide 1: Kirby Corporation: Putting America's Waterways to Work
Kirby Corporation Putting America’s Waterways to Work NYSE: KEX November
Slide 2: Forward Looking Statement and Non-GAAP Financial Measures
Statements contained in this presentation with respect to the future are Kirby reports its financial results in accordance with generally accepted forward-looking statements. These statements reflect management’s reasonable judgement with respect to future events. Forward-looking statements involve
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 U.S. EMD Diesel Services Company Kirby... Business Operations
Slide 4: 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 903 barges and 242 towing vessels • Sustainable competitive advantages: • 70% of Kirby’s business is under contract and 30% i
Slide 5: Revenue Growth
17% growth rate from 1988-2005 Revenue... Business Operations
Slide 6: 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 have been revised to reflect 2-for-1 stock split effecti
Slide 7: Industry Facts
Industry Facts • Approximately 17,800 dry cargo barges, 2,800 liquid tank barges. Kirby is principally in the liquid cargo business. • 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
Slide 8: Number of Inland Tank Barges, Single Hull
For the years 1993 through 2005 single hull tank barges industry wide, operated by Kirby Number of Inland Tank Barges
Slide 9: Inland Tank Barge Fleet
Source: Informa Economics, Barge Fleet Profile, March 2006 Inland Tank Barge Fleet
Slide 10: Refinery Operable Capacity
17,395 on Sep 8, 2006 Refinery Operable Capacity
Slide 11: Kirby Inland Marine
KIRBY INLAND MARINE
Slide 12: Largest Inland Tank Barge Operator
Petrochemicals – 67% Black Oil Products – 20% Agricultural Chemicals – 3% Refined Products – 10% • Benzene • Styrene • Methanol • Acrylonitrile • Xylene • Caustic soda • Butadiene • Propylene • Residual fuel • No. 6 fuel oil • Coker feed • Vacuum gas • Asphalt • Anhydrous ammonia • Nitrogen- based l
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
Tank Barge Owners By Number of Tank Barges Informa Economics, Barge Fleet Profile, March 2006 - Adjusted Shipper Owned Independent Tank Barges Operated Dry Cargo Barges Operated Kirby Corporation - American Commercial Lines LLC 2,803 Marathon Oil Corporation - Canal Barge Company, Inc. Ingram Barge
Slide 15: Revenue Distribution 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 Feedstock, Vacuum Gas Oil,
Slide 16: Kirby Engine Systems
Kirby Engine Systems
Slide 17: Diesel Engine Services
Markets – Electro-Motive Diesel (EMD) – Alco – Ingersoll-Rand – Caterpillar – Cummins – Detroit Diesel – John Deere – Allison – Falk – Twin-Disc Engines and Transmissions/Reduction Gears – Inland Waterway Carriers – Dry and Liquid – Offshore Towing – Dry and Liquid – Offshore Drilling Rigs & Supply
Slide 18: Acquisitions and Internal Growth
Acquisitions 1987 1991 1995 1996 1997 2000 2000 2004 2005 2006 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
Slide 19: Market Conditions
Market Conditions
Slide 20: Market Conditions: First Nine Months
• Record revenues, net earnings, earnings per share and EBITDA • Petrochemical, black oil and refined products markets remained strong • Favorable weather conditions positively impacted financial results, with delay days down 29% when compared with 2005 first nine months • Contract rates up 6% to 8%
Slide 21: Fourth Quarter and Year Outlook
• 2006 fourth quarter earnings per share guidance of $.40 to $.45, compared with $.38 for 2005 fourth quarter • Guidance based on: • Marine transportation operating fundamentals remain strong • Diesel engine services operating fundamentals remain strong • 2006 year earnings per share guidance of $1.
Slide 22: Financial Highlights
Financial Highlights
Slide 23: First Nine Months Ended September 30, 2006
For First Nine Months Ended September 30, 2006
Slide 24: Segment Operating Margins
25% —©-Marine Transportation _Diesel Engine Services, ae 189% 78.87 18.5% 11.7% 10.0% 10.1% 10.1% g5y, 9.7% 5% ‘2000 2001 ‘2002 ‘2003 ‘2008 2005 2006 & iS panama
Slide 25: Cash Flows
* Excluding acquisitions $28 Expansion Barges $138 Cash Flows
Slide 26: Debt / Capitalization
34.3% 57.3% Debt / Capitalization
Slide 27: Balance Sheet
Assets Current Assets Property & Equipment Goodwill Other Assets Total Assets Liabilities & Equity Current Liabilities Total Debt Other Liabilities Stockholders’ Equity Total Liabilities & Equity Debt to Capitalization 09/30/06 $ 249M 749 223 12/31/05
Slide 28: Financial Strength
– Standard & Poor’s – BBB+ – Moody’s – Baa3 – $200 million outstanding – Floating rate of LIBOR +0.5% – No required principal payments until maturity – Accordion feature allows maximum amount to increase to $325 million without amendment – $150 million of interest rate swaps • Investment grade publi
Slide 29: Why Invest In Kirby?
Why Invest In Kirby?
Slide 30: Why Invest in Kirby?
• Consistent long-term record of success in our two core businesses • Excellent business fundamentals • Strong free cash flow for growth • Internal and external growth opportunities in core businesses • Strong operating leverage with every 1% increase in marine transportation segment margin adds $.0
Slide 31: Thank You For Listening to Our Story
Thank You For Listening to Our Story Kirby Corporation Putting America’s Waterways to Work