KEX Kirby Corp.

Management Discussion

• For the 2020 third quarter, net earnings attributable to Kirby were $27,489,000, or $0.46 per share, on revenues of $496,567,000, compared with 2019 third quarter net earnings attributable to Kirby of $47,987,000, or $0.80 per share, on revenues of $666,809,000.  For the 2020 first nine months, net loss attributable to Kirby was $294,750,000, or $4.92 per share, on revenues of $1,681,652,000, compared with 2019 first nine months net earnings attributable to Kirby of $139,570,000, or $2.32 per share, on revenues of $2,182,472,000. The 2020 first quarter included $561,274,000 before taxes, $433,341,000 after taxes, or $7.24 per share, non-cash charges related to inventory write-downs, impairment of long-lived assets, including intangible assets and property and equipment, and impairment of goodwill in the distribution and services segment.  See Note 8, Impairments and Other Charges for additional information.  In addition, the 2020 first quarter was favorably impacted by an income tax benefit of $50,824,000, or $0.85 per share related to net operating losses generated in 2018 and 2019 used to offset taxable income generated between 2013 and 2017.  See Note 10, Taxes on Income for additional information.