K-Sea Transportation Partners LP

K-Sea Transportation Partners LP — Merger or Acquisition (March 2011)

45 slides from K-Sea Transportation Partners LP's merger presentation, Mar 22, 2011

  1. Slide 1: Kirby Corporation: Putting America's Waterways to Work

    KIRBY CORPORATION Putting America’s Waterways to Work NYSE: KEX March 2011

  2. Slide 2: Forward Looking Statements; Non-GAAP Financial Measures

    2 Forward Looking Statements Non-GAAP Financial Measures Statements contained in this presentation 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 uncertai

  3. Slide 3: Kirby Business Operations

    Marine Transportation of 2010 Revenue $915.1 million Largest U.S. Inland Tank Barge Operator 4 Kirby...Business Operations 18% 82%

  4. Slide 4: Kirby Public Market Facts

    Kirby...Public Market Facts 5 NYSE: K E X Current Price (March 17, 2011) $54.64 Number of Shares O/S (December 31, 2010) 53.7M Market Capitalization $2,932M Debt (December 31, 2010) $200M Enterprise Value $3,132M Employees 2,750

  5. Slide 5: Kirby Facts

    Kirby Facts 6 Largest inland tank barge operator Operating 846 barges and 238 towing vessels Sustainable competitive advantages: Lowest cost due to economies of scale Best positioned for growth opportunities "One Stop Shop" for customers 75% of inland marine transportation revenues under term contra

  6. Slide 6: Marine Transportation Acquisitions History

    7 Date No. of Tank Barges Description 1986 5 Alliance Marine 1989 35 Alamo Inland Marine Co. 1989 53 Brent Towing Company 1991 3 International Barge Lines, Inc. 1992 38 Sabine Towing & Transportation Co. 1992 26 Ole Man River Towing, Inc. 1992 29 Scott Chotin, Inc. 1992 * South Texas Towing 1993 72

  7. Slide 7: Acquisitions in Diesel Engine Services

    8 Acquisitions in Diesel Engine Services Acquisitions Acquisitions 1987 National Marine 1991 Ewing Diesel 1995 Percle Enterprises 1996 MKW Power Systems 1997 Crowley (Power Assembly Shop) 2000 West Kentucky Machine Shop 2000 Powerway 2004 Walker Paducah Corp. 2005 TECO (Diesel Services Division) 200

  8. Slide 8: Revenue: Business Operations

    Revenue... Business Operations 9 14.6% growth rate from 1988-2010

  9. Slide 9: Earnings Per Share

    (CHART) 10 Earnings 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 effective May 31, 2006 * Includes $.05 per share from ship bunkering operation purchased February 24, 2011 * Includes $.15 to $.20

  10. Slide 10: Kirby Inland Marine

    11 KIRBY INLAND MARINE

  11. Slide 11: Inland Waterway System

    12 Inland Waterway System Sioux City Chicago Pittsburgh Charleston Tulsa Corpus Christi New Orleans St. Louis Cincinnati Mobile Brownsville Houston St. Marks Texas and Louisiana account for 80% of the total U.S. production of chemicals and petrochemicals St. Paul Kirby is one of the few operators of

  12. Slide 12: Barge Industry Facts

    Barge Industry Facts Approximately 18,000 dry cargo barges and 3,100 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

  13. Slide 13: Number of Inland Tank Barges

    14 Number of Inland Tank Barges For the years 1993 through March 2011 121 single hull tank barges industry wide, 9 operated by Kirby (CHART) Source: Informa Economics, Barge Fleet Profile, March 2011 - Adjusted

  14. Slide 14: Inland Tank Barge Fleet

    15 Inland Tank Barge Fleet Source: Informa Economics, Barge Fleet Profile, March 2011 (CHART)

  15. Slide 15: Largest Inland Tank Barge Operator

    Largest Inland Tank Barge Operator 16 Benzene Styrene Methanol Acrylonitrile Xylene Caustic soda Butadiene Propylene Residual fuel oil Coker feedstock Vacuum gas oil Asphalt Carbon black feedstock Crude oil Ship bunkers Black Oil Products - 18%* Anhydrous ammonia Nitrogen-based liquid fertilizer Ind

  16. Slide 16: Fleet Size and Flexibility

    Fleet Size and Flexibility... Towboat Fleet Operating an average of 220 towboats in 4th Qtr. of 2010 vs. 212 in 4th Qtr. of 2009 Chartered towboats used to balance horsepower with demand 17 Tank Barge Fleet Large fleet facilitates better asset utilization More backhaul opportunities Faster barge tur

  17. Slide 17: Kirby Outpaces the Competition

    18 Tank Barges Operated Dry Cargo Barges Operated Genesis Energy, L.P. 20 - Rhodia, Inc. 19 - TARGA 18 - John W. Stone Oil 17 - Lyondell Chemical Company 17 - Olin Corporation 15 - Highland Marine 11 - Merichem Company 10 - Progressive Barge Line 10 - AgriChemical Marine Transp 8 - Natures Way Marin

  18. Slide 18: End Uses of Products and Demand Drivers

    19 End Uses of Products... Revenue Distribution * Products Moved Products Drivers 69% Petrochemicals and Chemicals Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Caustic Soda, Butadiene, Propylene Consumer non-durables - 70%Consumer durables - 30% 18% Black Oil Products Residual Fuel Oil, Coker

  19. Slide 19: Strong Emphasis on Safety

    Committed to dedicating adequate resources to achieve safety objectives Extensive company-owned and operated training facility (Towboat Simulator) Industry leader First winner of Benkert Award, highest award given by Department of Transportation for safety and environmental protection 20 Committed t

  20. Slide 20: Kirby Engine Systems

    21 KIRBY ENGINE SYSTEMS

  21. Slide 21: Diesel Engine Services Markets

    22 Diesel Engine Services Markets Medium-Speed and High-Speed Diesel Engines Marine Inland Waterway Carriers - Dry and LiquidOffshore Towing - Dry and LiquidOffshore Drilling Rigs & Supply BoatsHarbor TowingDredgingGreat Lakes Ore Carriers Power Generation, Nuclear, and Industrial Standby Power Gene

  22. Slide 22: Diesel Engine Services Engines and Transmissions

    23 Diesel Engine Services Engines and Transmissions/Reduction Gears Medium-Speed Electro-Motive Diesel (EMD)Cooper-BessemerNordberg High-Speed CaterpillarCumminsDetroit DieselJohn Deere Transmissions/Reduction Gears AllisonFalk Twin Disc

  23. Slide 23: Acquisitions

    ACQUISITIONS 24

  24. Slide 24: Acquisition of Ship Bunkering Operation

    25 Acquisition of Ship Bunkering Operation Acquired from Enterprise Marine Services Ship bunkering (engine fuel) operation primarily in Florida and Texas Consists of 21 tank barges and 15 boats Purchase price of approximately $53.2M in cash Immediately accretive to Kirby's earnings Full year 2011 re

  25. Slide 25: Pending Acquisition of United Holdings LLC

    26 Pending Acquisition of United Holdings LLC Manufacturer, distributor and service provider of engine related products 21 locations across 13 states, located near a number of shale gas plays Expands diesel engine business to land Purchase price of approximately $270M, with up to a $50M earnout in 2

  26. Slide 26: Pending Acquisition of K-Sea Transportation Partners L.P.

    27 Pending Acquisition of K-Sea Transportation Partners L.P. Operator of tank barges and towing vessels participating in the coastwise transportation of primarily refined petroleum products Fleet consists of 58 tank barges with 3.8 million barrels of capacity (54 are double hull) and 63 tugboats, op

  27. Slide 27: Kirby Business Operations After Acquisitions

    2012F $1.8 - $2.0 Billion 2010A $1.1 Billion 28 Kirby...Business Operations After Acquisitions 82% Marine Transportation 18% Diesel Engine Services 35%* Diesel Engine Services 65%* Marine Transportation REVENUES * Approximate percentage that could vary significantly based on market and economic cond

  28. Slide 28: Outlook

    OUTLOOK S&S

  29. Slide 29: 2011 First Quarter and Year Guidance

    30 2011 First Quarter and Year Guidance First Qtr. Guidance Range: $.56 to $.61 per share vs. $.46 per share for 2010 Q1 that include $.05 per share charge for early retirements and shore staff reductions Full Year Guidance Range: $2.55 to $2.80 per share, up from previous announced guidance range o

  30. Slide 30: Tank Barge and Towboat Construction

    31 Tank Barge and Towboat Construction 2010 construction program took advantage of attractive construction prices 57 new tank barges delivered throughout 2010 3 new 1800 horsepower towboats 2011 construction program, taking advantage of attractive construction prices 38 new 30,000 barrel tank barges

  31. Slide 31: Financial Highlights

    Financial Highlights 32

  32. Slide 32: Income Statement for Year Ended December 31, 2010

    33 For Year Ended December 31, 2010 Change from 2009 Change from 2009 Income Statement 2010 2009 $ % Revenues: Marine Transportation $ 915.1M $ 881.3M $ 33.8M 4% Diesel Engine Services 194.5 200.9 (6.4) (3) Total $ 1,109.6M $ 1,082.2M $ 27.4M 3% Operating Income: Marine Transportation $ 192.8M $ 208

  33. Slide 33: Operating Margins

    Operating Margins Operating Margins 34 (CHART)

  34. Slide 34: EBITDA Per Share Growth

    EBITDA Per Share Growth EBITDA Per Share Growth 35 See Appendix for reconciliation of GAAP net earnings to Non-GAAP EBITDA (CHART) 11.1% growth rate from 1994 - 2010

  35. Slide 35: Cash Flows

    Cash Flows Cash Flows 36 Expansion Barges $30 * Unaudited (CHART) $193 $185* *Includes $15 million of capital expenditures for United Holdings LLC

  36. Slide 36: Debt/Capitalization

    (CHART) Debt/Capitalization 37 14.7% 57.3%

  37. Slide 37: Financial Strength

    Financial Strength 38 Investment grade debt, after K-Sea Transportation announcement Standard & Poor's: A- (Credit Watch with Negative Implications) Moody's: Baa3 Fitch: BBB $250 million bank revolving credit None presently outstanding Renewed in November 2010, 5 year renewal 8-year unsecured Privat

  38. Slide 38: Why Invest in Kirby?

    Why Invest in Kirby? 39

  39. Slide 39: Why Invest in Kirby?

    Why Invest in Kirby? 40 Consistent long-term record of success Experienced Management teams in both core businesses Marine Transportation 75% of business under term contracts, of which approximately 50% are under time charters Approximately 70% of petrochemicals moved produce consumer nondurable goo

  40. Slide 40: Thank You For Listening to Our Story

    Thank You For Listening to Our Story Kirby Corporation Putting America's Waterways to Work

  41. Slide 41: Reconciliation of GAAP to Non-GAAP Financial Measures

    KIRBY CORPORATION Reconciliation of GAAP to Non-GAAP Financial Measures Kirby reports its financial results in accordance with generally accepted accounting principles (GAAP). However, Kirby believes that certain non-GAAP financial measures are useful in managing Kirby's businesses and. evaluating K

  42. Slide 42: Reconciliation of GAAP Net Earnings to Adjusted Net Earnings

    ee coe Sere + “KIRBY CORPORATION Reconciliation of GAAP Net Earnings Attributable to Kirby and Eamings Per Share Attributable to Kirby Common Stockholders to Non-GAAP Adjusted. Net Earnings Attributable to Kirby and Adjusted Earnings Per Share Attributable to Kirby Common Stockholders (Sinmliers) No

  43. Slide 43: Reconciliation of GAAP Net Earnings to Non-GAAP EBITDA

    we = ie BBs cs ee KIRBY CORPORATION Reconciliation of GAAP Net Eamings Attributable to Kirby to Non-GAAP EBITDA. mo rosa OHMS O20 az (Sinmters) NeteamingsatuubotoKiby, CMAP $1162 $1259 $1572 $ 1253 $955 $688 $495 $409 $274 $395 $341 lore xpere nom) 1 3 tessa ts Pron oa econ m3 0k 8ST SUA} HOS HT Dep

  44. Slide 44: Reconciliation of GAAP Net Earnings to Non-GAAP EBITDA (Quarterly)

    ea er? Saree * KIRBY CORPORATION Reconciliation of GAAP Net Eamings Attributable to Kirby to Non-GAAP EBITDA ‘Throo Months Ended Three Months Ended Three Months Ended Three Months Ended ‘Year Ended March 3, June 30, September 30, December 31 December 31, 2010 2009 _2010 2008 _2010_ 2009 2010 _2008_2

  45. Slide 45: Marine Transportation Performance Measurements

    KIRBY CORPORATION MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS. meer ems 200s 2006 2072008 2 Yor Yar Yer Yor Yer Yar Yar O20) Me re Ho Ho £0 Yer TonmleGaiomy® UST 1S 162 LL 156 67614267 27m ng? ses 338324 33799 Feats MoM 6 8 8 3 16 Sn er Dae so 64a yn 9m tam IR 156 somata gee 1a sr “Ton miles indi

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