Kirby Corp KEX Stock Analysis

About Kirby Corp

Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, Kirby participates in the transportation of dry-bulk commodities in United States coastwise trade. Through the distribution and services segment, Kirby provides after-market service and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications. Kirby also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets. For the oil and gas market, Kirby manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufactures electric power generation equipment, and specialized electrical distribution and control equipment for oilfield customers. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS Third Quarter Nine Months 2024 2023 2024 2023 (unaudited, $ in thousands, except per share amounts) Revenues: Marine transportation $ 486,054 $ 429,885 $ 1,446,274 $ 1,269,342 Distribution and services 345,095 334,887 1,017,287 1,023,122 Total revenues 831,149 764,772 2,463,561 2,292,464 Costs and expenses: Costs of sales and operating expenses 552,091 530,541 1,657,004 1,618,690 Selling, general and administrative 84,119 79,125 254,708 250,870 Taxes, other than on income 8,973 9,666 27,327 28,610 Depreciation and amortization 60,653 53,445 177,777 156,251 Gain on disposition of assets (1,617 ) (1,528 ) (2,206 ) (4,230 ) Total costs and expenses 704,219 671,249 2,114,610 2,050,191 Operating income 126,930 93,523 348,951 242,273 Other income 2,949 1,589 9,306 9,296 Interest expense (12,498 ) (13,386 ) (38,468 ) (38,893 ) Earnings before taxes on income 117,381 81,726 319,789 212,676 Provision for taxes on income (27,350 ) (18,722 ) (75,861 ) (51,733 ) Net earnings 90,031 63,004 243,928 160,943 Net (earnings) loss attributable to noncontrolling interests (63 ) (40 ) (38 ) 86 Net earnings attributable to Kirby $ 89,968 $ 62,964 $ 243,890 $ 161,029 Net earnings per share attributable to Kirby common stockholders: Basic $ 1.56 $ 1.06 $ 4.20 $ 2.70 Diluted $ 1.55 $ 1.05 $ 4.17 $ 2.68 Common stock outstanding (in thousands): Basic 57,753 59,383 58,129 59,721 Diluted 58,186 59,746 58,526 60,033 CONDENSED CONSOLIDATED FINANCIAL INFORMATION Third Quarter Nine Months 2024 2023 2024 2023 (unaudited, $ in thousands) EBITDA: (1) Net earnings attributable to Kirby $ 89,968 $ 62,964 $ 243,890 $ 161,029 Interest expense 12,498 13,386 38,468 38,893 Provision for taxes on income 27,350 18,722 75,861 51,733 Depreciation and amortization 60,653 53,445 177,777 156,251 $ 190,469 $ 148,517 $ 535,996 $ 407,906 Capital expenditures $ 76,383 $ 103,718 $ 245,990 $ 274,963 Acquisitions of businesses and marine equipment $ — $ 37,500 $ 65,232 $ 37,500 September 30, 2024 December 31, 2023 (unaudited, $ in thousands) Cash and cash equivalents $ 67,073 $ 32,577 Long-term debt, including current portion $ 978,593 $ 1,016,595 Total equity $ 3,303,610 $ 3,186,677 Debt to capitalization ratio 22.9 % 24.2 % MARINE TRANSPORTATION STATEMENTS OF EARNINGS Third Quarter Nine Months 2024 2023 2024 2023 (unaudited, $ in thousands) Marine transportation revenues $ 486,054 $ 429,885 $ 1,446,274 $ 1,269,342 Costs and expenses: Costs of sales and operating expenses 296,114 278,979 897,351 836,620 Selling, general and administrative 34,064 33,000 103,712 101,592 Taxes, other than on income 6,524 7,783 21,104 23,052…