KEX Kirby Corp.

Management Discussion

• The Company reported 2019 second quarter net earnings attributable to Kirby of $47,287,000, or $0.79 per share, on revenues of $771,042,000, compared with 2018 second quarter net earnings attributable to Kirby of $28,602,000, or $0.48 per share, on revenues of $802,671,000.  Net earnings attributable to Kirby for the 2019 first six months were $91,583,000, or $1.53 per share, on revenues of $1,515,663,000, compared with $61,073,000, or $1.02 per share, on revenues of $1,544,359,000 for the 2018 first six months.  The 2018 second quarter and first six months results included a one-time non-deductible expense of $18,057,000, or $0.30 per share, related to the retirement of Joseph H. Pyne as executive Chairman of the Board of Directors, effective April 30, 2018. The 2018 first quarter results reflected the acquisition of Higman on February 14, 2018 and included $3,261,000 before taxes, or $0.04 per share, of one-time transaction costs associated with the acquisition, as well as $2,912,000 before taxes, or $0.04 per share, of severance and retirement expenses, primarily related to cost reduction initiatives in the coastal marine transportation market and the integration of Higman.