Kirby Corporation Announces 2009 First Quarter Results

- 2009 first quarter earnings per share were $.52 compared with $.68 earned in
the 2008 first quarter

- Results included a $.05 per share charge for early retirements and staff
reductions

- 2009 second quarter earnings per share guidance is $.52 to $.62 versus $.74
earned in the 2008 second quarter

- 2009 year earnings per share guidance revised to $2.40 to $2.55 versus $2.91
earned in the 2008 year

HOUSTON, April 29 /PRNewswire-FirstCall/ -- Kirby Corporation ("Kirby") (NYSE:
KEX) today announced net earnings for the first quarter ended March 31, 2009
of $28.0 million, or $.52 per share, compared with net earnings of $36.6
million, or $.68 per share, for the 2008 first quarter. The 2009 first
quarter net earnings included a $4.0 million before taxes, or $.05 per share,
charge for early retirements and staff reductions. Kirby's published 2009
first quarter earnings guidance range was $.45 to $.55 per share. Consolidated
revenues for the 2009 first quarter were $277.7 million compared with revenues
of $330.6 million reported for the 2008 first quarter.

Joe Pyne, Kirby's President and Chief Executive Officer commented, "The
current economic recession and its impact on both our marine transportation
and diesel engine services businesses ended our current string of 20
consecutive quarters with year over year net earnings increases. Our
transportation volumes across all segments softened, driven by the
deteriorating economic conditions, resulting in lower revenue and operating
income, partially offset by favorable first quarter winter weather conditions.
Our diesel engine services segment saw service levels and direct parts sales
further weaken in the first quarter in the Gulf Coast oil service, inland
marine and railroad markets, as customers deferred maintenance."

Mr. Pyne further commented, "As a result of the lower demand during the 2009
first quarter for both our marine transportation and diesel engine services
segments, we have taken specific steps to reduce overhead and lower
expenditures. The shore staffs of the marine transportation and diesel engine
services segments were reduced by approximately 6% through early retirement
incentives and staff reductions. A charge of $4.0 million before taxes, $2.6
million for marine transportation and $1.4 million for diesel engine services,
or $.05 per share, was taken in the 2009 first quarter. We estimate that the
early retirements and staff reductions will result in savings of $.02 per
share for the 2009 year and $.08 per share for 2010. In addition, we froze
all officer and management salaries at 2008 levels, significantly reduced the
number of chartered towboats we operate, moved several owned towboats and tank
barges to inactive status and reduced maintenance on that equipment. We will
continue to monitor our staffing, horsepower and maintenance requirements and
will take the necessary steps to ensure that Kirby is operating as prudently
and efficiently as possible during this period of economic uncertainty."

Segment Results - Marine Transportation
Marine transportation revenues and operating income for the 2009 first quarter
decreased 16% and 17%, respectively, compared with the first quarter of 2008.
All four transportation markets, petrochemicals, black oil products, refined
petroleum products and agricultural chemicals, saw demand for the movement of
products soften. In addition, lower diesel fuel prices resulted in a
reduction in revenues when compared with the 2008 first quarter. With the
continued high volatility of diesel fuel prices, the timing impact was a
negative $.03 per share for the 2009 first quarter. Some small improvement in
upriver demand of more finished petrochemical products was realized in the
2009 first quarter as Midwest industries restarted their plants. However,
Gulf Intracoastal Waterway petrochemical products demand declined as
anticipated, resulting in excess tank barge capacity and lower spot market
pricing. Also, as anticipated, demand for the movement of black oil products,
refined products and agricultural chemicals was below prior year levels.
Partially offsetting the impact of the lower demand was a 48% improvement in
delay days when compared with the 2008 first quarter, the result of favorable
2009 first quarter winter weather operating conditions. Despite lower demand,
the segment's operating margin was 21.1% compared with 21.3% for the first
quarter of 2008, reflecting the reduction of chartered towboats, frozen
officer and management salaries, reduced maintenance on inactive equipment,
ongoing cost reduction initiatives and favorable winter weather operating
conditions, partially offset by the charge for early retirements and staff
reductions.

The marine transportation segment operated an average of 232 towboats during
the 2009 first quarter compared with an average of 260 towboats during the
2008 first quarter and 250 during the 2008 fourth quarter. As demand softened
during the 2008 fourth quarter and 2009 first quarter, Kirby released
chartered towboats and laid-up certain owned towboats in an effort to balance
horsepower needs with current requirements. As of April 29, 2009, Kirby was
operating 221 towboats and will continue to downsize the towboat fleet if
warranted by market changes.

Segment Results - Diesel Engine Services
Diesel engine services revenues and operating income for the 2009 first
quarter decreased 15% and 54%, respectively, compared with the 2008 first
quarter. Demand for service and direct parts sales in the Gulf Coast marine
medium-speed and high-speed markets weakened considerably as Gulf Coast oil
service and inland marine customers deferred maintenance as their activities
slowed. The medium-speed railroad market was also weak as industrial and
shortline railroad customers deferred maintenance in response to the economic
slowdown. The diesel engine services operating margin was 8.7% for the 2009
first quarter compared with 16.0% for the 2008 first quarter, reflecting lower
service and parts sales and resulting lower utilization, and the early
retirements and staff reductions noted above. Excluding the early retirements
and staff reductions charge, the diesel engine services operating margin would
have been 11.1%.

Cash Flow
Strong cash flow for the 2009 first quarter, aided by a reduction in accounts
receivable, was used to fund capital expenditures of $64.8 million, including
$48.5 million for new tank barge and towboat construction and $16.3 million
for upgrades to the existing fleet, and to reduce its revolving line of credit
by $21.0 million. Total debt as of March 31, 2009 was $226.3 million and
Kirby's debt-to-capitalization ratio was 19.7%, down from 21.7% at December
31, 2008 and 25.9% at March 31, 2008.

Outlook
Commenting on the 2009 second quarter, Mr. Pyne said, "For the 2009 second
quarter, our earnings guidance is $.52 to $.62 per share, reflecting a 16% to
30% decrease compared with $.74 per share for the 2008 second quarter. For
the 2009 year, we are maintaining our lower earnings per share guidance of
$2.40 but reducing our higher guidance to $2.55 from $2.65. We have seen some
short-term improvement in upriver movements in our marine transportation
segment, but we enter the 2009 second quarter with lower utilization rates
than the first quarter and with spot market rates which continue to decline.
We have seen some short-term improvement in our diesel engine services Gulf
Coast oil service and inland marine markets. Our 2009 capital spending
guidance range was lowered slightly to $180 to $190 million, which includes
approximately $135 million for the construction of 46 new tank barges and five
towboats."

Conference Call
A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
April 30, 2009, to discuss the 2009 first quarter performance as well as the
outlook for the 2009 second quarter and year. The conference call number is
800-446-1671 for domestic callers and 847-413-3362 for international callers.
The leader's name is Steve Holcomb. The confirmation number is 24377163. An
audio playback will be available at 1:00 p.m. central time on Thursday, April
30, through 5:00 p.m. central time on Friday, May 29, by dialing 888-843-8996
for domestic and 630-652-3044 for international callers. A live audio webcast
of the conference call will be available to the public and a replay available
after the call by visiting Kirby's website at http://www.kirbycorp.com/.

GAAP to Non-GAAP Financial Measures
The financial and other information to be discussed in the conference call is
available in this press release and in a Form 8-K filed with the Securities
and Exchange Commission. This press release and the Form 8-K include a
non-GAAP financial measure, EBITDA, which Kirby defines as net earnings
attributable to Kirby before interest expense, taxes on income, depreciation
and amortization. A reconciliation of EBITDA with GAAP net earnings
attributable to Kirby is included in this press release. This earnings press
release includes marine transportation performance measures, consisting of ton
miles, revenue per ton mile, towboats operated and delay days. Comparable
performance measures for the 2008 and 2007 years and quarters are available at
Kirby's web site, http://www.kirbycorp.com/, under the caption Performance
Measurements in the Investor Relations section.

About Kirby Corporation
Kirby Corporation, based in Houston, Texas, operates inland tank barges and
towing vessels, transporting petrochemicals, black oil products, refined
petroleum products and agricultural chemicals throughout the United States'
inland waterway system. Kirby also owns and operates four ocean-going barge
and tug units transporting dry-bulk commodities in United States coastwise
trade. Through the diesel engine services segment, Kirby provides
after-market service for medium-speed and high-speed diesel engines and
reduction gears used in marine, power generation and railroad applications.

Statements contained in this press release 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 results could differ materially from those
anticipated as a result of various factors, including cyclical or other
downturns in demand, significant pricing competition, unanticipated additions
to industry capacity, changes in the Jones Act or in U.S. maritime policy and
practice, fuel costs, interest rates, weather conditions, and timing,
magnitude and number of acquisitions made by Kirby. Forward-looking
statements are based on currently available information and Kirby assumes no
obligation to update any such statements. A list of additional risk factors
can be found in Kirby's annual report on Form 10-K for the year ended December
31, 2008 filed with the Securities and Exchange Commission.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

First Quarter
2009 2008
(unaudited, $ in thousands except
per share amounts)
Revenues:
Marine transportation $219,021 $261,228
Diesel engine services 58,640 69,342
277,661 330,570
Costs and expenses:
Costs of sales and operating expenses 169,094 208,346
Selling, general and administrative 34,810 32,872
Taxes, other than on income 3,085 3,533
Depreciation and amortization 22,276 22,327
Loss (gain) on disposition of assets (244) 58
229,021 267,136

Operating income 48,640 63,434
Other income (expense) 95 (96)
Interest expense (2,813) (3,782)

Earnings before taxes on income 45,922 59,556
Provision for taxes on income (17,458) (22,748)

Net earnings 28,464 36,808
Less: Net earnings attributable
to noncontrolling interests (458) (161)
Net earnings attributable to Kirby $28,006 $36,647

Net earnings per share attributable
to Kirby common shareholders:
Basic $0.53 $0.69
Diluted $0.52 $0.68
Common stock outstanding (in thousands):
Basic 53,195 53,222
Diluted 53,858 54,051

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

First Quarter
2009 2008
(unaudited, $ in thousands)
EBITDA: (1)
Net earnings attributable to Kirby $28,006 $36,647
Interest expense 2,813 3,782
Provision for taxes on income 17,458 22,748
Depreciation and amortization 22,276 22,327
$70,553 $85,504

Capital expenditures $64,845 $48,753
Acquisition of marine equipment $- $1,800
March 31,
2009 2008
(unaudited, $in thousands)
Long-term debt, including current
portion $226,292 $283,230
Total equity $924,994 $810,294
Debt to capitalization ratio 19.7% 25.9%

MARINE TRANSPORTATION STATEMENTS OF EARNINGS

First Quarter
2009 2008
(unaudited, $ in thousands)

Marine transportation revenues $219,021 $261,228

Costs and expenses:
Costs of sales and operating expenses 125,865 159,649
Selling, general and administrative 23,465 22,308
Taxes, other than on income 2,791 3,235
Depreciation and amortization 20,682 20,520
172,803 205,712

Operating income $46,218 $55,516

Operating margins 21.1% 21.3%

DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS

First Quarter
2009 2008
(unaudited, $ in thousands)

Diesel engine services revenues $58,640 $69,342

Costs and expenses:
Costs of sales and operating expenses 43,229 48,697
Selling, general and administrative 8,963 7,832
Taxes, other than on income 283 274
Depreciation and amortization 1,078 1,434
53,553 58,237

Operating income $5,087 $11,105

Operating margins 8.7% 16.0%

OTHER COSTS AND EXPENSES

First Quarter
2009 2008
(unaudited, $in thousands)

General corporate expenses $2,909 $3,129

Loss (gain) on disposition of assets $(244) $58

MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS

First Quarter
2009 2008

Ton Miles (in millions) (2) 2,780 3,806
Revenue/Ton Mile (cents/tm) (3) 7.6 6.6
Towboats operated (average) (4) 232 260
Delay Days (5) 1,564 2,998
Average cost per gallon of fuel consumed $1.56 $2.71
Tank barges:
Active 897 912
Inactive 92 63
Barrel Capacities (in millions):
Active 17.2 17.3
Inactive 1.6 1.2

(1) Kirby has historically evaluated its operating performance using
numerous measures, one of which is EBITDA, a non-GAAP financial
measure. Kirby defines EBITDA as net earnings attributable to
Kirby before interest expense, taxes on income,
depreciation and amortization. EBITDA is presented because of its
wide acceptance as a financial indicator. EBITDA is one of the
performance measures used in Kirby's incentive bonus plan. EBITDA
is also used by rating agencies in determining Kirby's credit rating
and by analysts publishing research reports on Kirby, as well as by
investors and investment bankers generally in valuing companies.
EBITDA is not a calculation based on generally accepted accounting
principles and should not be considered as an alternative to, but
should only be considered in conjunction with, Kirby's GAAP
financial information.
(2) Ton miles indicate fleet productivity by measuring the distance
(in miles) a loaded tank barge is moved. Example: A typical
30,000 barrel tank barge loaded with 3,300 tons of liquid cargo
is moved 100 miles, thus generating 330,000 ton miles.
(3) Inland marine transportation revenues divided by ton miles. Example:
First quarter 2009 inland marine revenues of $210,507,000
divided by 2,780,000,000 marine transportation ton miles = 7.6 cents.
(4) Towboats operated are the average number of owned and chartered
towboats operated during the period.
(5) Delay days measures the lost time incurred by a tow (towboat and one
or more tank barges) during transit. The measure includes
transit delays caused by weather, lock congestion and other
navigational factors.

SOURCE Kirby Corporation

Steve Holcomb of Kirby Corporation, +1-713-435-1135