Stock Monitor: Danaos Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free earnings report on Kirby Corp. (NYSE: KEX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KEX. Kirby reported its fourth quarter and fiscal 2017 operating and financial results on January 31, 2018. The barge operator outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Danaos Corporation (NYSE: DAC), which also belongs to the Services sector as the Company Kirby. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kirby most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Kirby's consolidated revenues for Q4 2017 soared 63% to $708.1 million compared to $435.7 million reported for Q4 2016. The Company's reported numbers beat analysts' estimates of $2.21 billion.
For full year (FY) 2017, Kirby's consolidated revenues advanced 25% to $2.21 billion versus $1.77 billion for FY16.

Kirby announced net earnings attributable to the Company of $231.3 million, or $3.87 per share, for Q4 2017 compared to $32.4 million, or $0.60 per share, for Q4 2016. Kirby's reported quarter earnings included a one-time $4.51 per share benefit from US tax reform, partially offset by charges including an impairment of coastal marine vessels of $1.12 per share, and severance and workforce early retirements of $0.06 per share. On an adjusted basis, the Company reported earnings of $0.54 per share, ahead of Wall Street's estimates of $0.53 per share.

For FY17, Kirby reported net earnings attributable to the Company of $313.2 million, or $5.62 per share, compared to $141.4 million, or $2.62 per share, for FY16. The Company's FY17 earnings included a one-time $4.83 per share benefit from US tax reform, partially offset by charges including an impairment of coastal marine vessels of $1.20 per share, and severance and workforce early retirements of $0.06 per share.

Kirby's Segment Results

During Q4 2017, the Marine transportation segment's revenues were $330.4 million compared to $356.2 million for Q4 2016. The segment's operating income for the reported quarter was $28.9 million compared to $59.1 million for the year earlier corresponding quarter.

During Q4 2017, Marine transportation's barge utilization was in the low to mid-90% range in the inland market, compared to mid-80% range in Q4 2016. In the coastal market, utilization was in the low to mid-60% range during Q4 2017 as the market continued to weaken and more barges transitioned from term contracts into the spot market.

The marine transportation segment's operating margin was 8.8% for Q4 2017 compared to 16.6% for Q4 2016, as a result of weaker term pricing in both marine markets, lower spot pricing in the coastal market, and reduced utilization in the coastal market.

During Q4 2017, the Distribution and services segment's revenues were higher at $377.7 million with operating income of $34.5 million compared to revenues of $79.4 million and operating income of $1.3 million in Q4 2016. The growth in revenues and operating profit were primarily due to accelerated growth in the legacy land-based business and the acquisition of Stewart & Stevenson (S&S), which was completed in Q3 2017.

In the marine distribution and services business, revenues, and operating profit increased compared to the year ago same period primarily due to more customers performing major maintenance overhauls of medium-speed diesel engines that were previously deferred as well as higher demand for new parts in the Gulf Coast offshore drilling market. Demand in the power generation market was slightly higher in the reported quarter, both sequentially and compared to Q4 2016.

The distribution and services segment's operating margin was 9.1% for Q4 2017 compared to 1.7% for Q4 2016, attributed to increased activity in the legacy land-based business and marine-based medium-speed engine business as well as the favorable contribution from S&S.

Cash Generation

During FY17, Kirby's cash flow was used to fund capital expenditures of $177.2 million, including $17.9 million for new inland tank barge and towboat construction, $53.8 million for progress payments on the construction of one new coastal articulated tank barge and tugboat unit (ATB), two 4900 horsepower coastal tugboats and six 5000 horsepower coastal ATB tugboats, and $105.5 million primarily for upgrades to existing inland and coastal fleets and marine transportation and distribution and services facilities. Furthermore, the Company's cash utilized in acquisitions was $470.1 million, including $377.9 million for the acquisition of S&S. Kirby's total debt as of December 31, 2017, was $992.4 million and the Company's debt-to-capitalization ratio was 24.2%.

Outlook

For Q1 2018, Kirby is forecasting earnings guidance in the range of $0.45 to $0.65 per share, including a $0.05 to $0.10 per share temporary negative impact to the Company's distribution and services segment related to the adoption of a new revenue recognition accounting standard which limits percentage of completion revenue accruals.

Kirby's FY18 earnings guidance is $2.50 to $3.00 per share. The Company's forecast includes the benefit of a lower effective tax rate of $0.08 to $0.12 per share for Q1 2018 and $0.40 to $0.50 per share for FY18.
Kirby expects 2018 capital spending to be in the $195 million to $215 million range. Capital spending guidance includes approximately $75 million in progress payments on new marine vessels, while approximately $100 million to $115 million is associated with capital upgrades and improvements to existing inland and coastal marine equipment.

Stock Performance Snapshot

February 16, 2018 - At Friday's closing bell, Kirby's stock rose 1.06%, ending the trading session at $75.95.

Volume traded for the day: 587.84 thousand shares, which was above the 3-month average volume of 505.38 thousand shares.

Stock performance in the last month - up 2.36%; previous three-month period - up 22.11%; past twelve-month period - up 7.12%; and year-to-date - up 13.70%

After last Friday's close, Kirby's market cap was at $4.49 billion.

Price to Earnings (P/E) ratio was at 36.10.

The stock is part of the Services sector, categorized under the Shipping industry.

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