KEX Kirby

Eric Holcomb IR
Joe Pyne Chairman
David Grzebinski President and CEO
Gregory Lewis Credit Suisse
Michael Webber Wells Fargo
Jack Atkins Stephens
Jon Chappell Evercore
Randy Giveans Jefferies
Kevin Sterling Seaport Global
Justin Bergner Gabelli & Company
David Beard Coker Palmer
Call transcript
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Good morning and welcome to the Kirby Corporation 2017 Fourth Quarter and Full Year Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. of VP Kirby's Holcomb, Investor Relations. Eric ahead. go Please

Eric Holcomb

Kirby’s us. Good are today President Chief Bill joining of David morning thank you and Harvey, and Officer and With Executive Vice Joe Kirby's President Finance. me Grzebinski, for Executive Pyne, Chairman; Kirby’s

website call conference available the are most refer Relations to to is our call, future in financial is directly reflect in financial on at comparable or certain contained to financial non-GAAP our Investor may of respect statements earnings included and future reconciliation events. section GAAP A the Statements we press management's fourth measures this non-GAAP adjusted During measures. Highlights. in to the release with reasonable forward-looking These under with Financial statements. quarter the this judgment conference measures respect

the Forward-looking and statements of for XX, these Joe. XX-Q differ Kirby’s quarterly ended in be year December XX-K actual materially a results factors. found now to the those Form our in risk call September A Form could and result the period turn over anticipated list of as can report for various involve XXXX. from uncertainties XXXX, subsequent factors risks Kirby's I'll on and XX, ended

Joe Pyne

and earnings Fourth guidance $X.XX per fourth results of share these for retirement. XXXX tax quarter. by result severance vessels, $X.XX compare to as quarter for everybody. per is $X.XX and non-reoccurring benefit Eric and comes $X.XX deferred per reported tax good included of offset to $X.XX items, afternoon, Thank share. which of of you, XXXX recent charges $X.XX and quarter share, a morning Yesterday share, revaluation coastal after been quarter impairments earnings of our form $X.XX announced one-time partially share a earnings to fourth quarter fourth have workforce the per the fourth we Without per would per range of our These tax legislation share. early including

capacity, we the utilization that Inland quarter customers’ in prices hurricane experienced after at the quarter, our competitors to elevated barge commodity a Marine levels industry petrochemical tank did third depressed both excess for this, During to barge demand aggressive and little products of few the Despite Favorable remained what spot for tank were similar existence and to new capacity barge Harvey. pricing. contributed market higher improve transportation.

in look that XXXX to we will the a are As to remain ranged much in we challenging downturn. the start for low from the rates the for expectations nondurables outlook our quarter tied market two term as new contracts and and In the demand barges of consecutive spot scheduled economists mid-XX% our fundamentals projecting growth petrochemical this market, utilization plants next have to coastal GDP level for more business. transition the goods the largest during of see favorable ultimately XX into two petrochemical complete second forward, since long-term With consumer the quarter. years, the

action our number our in service impaired is coastal and balance experienced We an segment to early to and improve the necessary, market, our strong demand forward. for barges particularly profitability our During but boats. we and The this distribution consistently early quarter, only proactively restore tub of services, going also in and base products business. land believe a the help not to retired older

pressure but a higher to efficiencies. transmissions. well new drove remanufacturing & new and increased rig sequentially, growing on overhauled drilled as and inventories this moved we shortage growing well contract count improved immediately pumping To as capitalize completed sales wins, new approximately which US Stevenson, quickly Stewart pumping to demand, not led of and orders horsepower working pressure the declined for While X.X% units integrate

have in horsepower X more ratably to industry pressure bit growing are pumping the to a customers turnaround years, well but and a for demand positioned than and two capital see our X we million cycles this distribution remain deferral a to as maintenance benefit prolonged one focused With on engines market, started in the to discipline our calling of for In new growth. modest from the prior million overhauls, program. fleet business, service next over following working we of additional marine

marine and to as excellent. their longer no We customers Retiring consolidates. critical rationalization fleets. in continue age vessels in parts of In improve our the of expect can remain efficiency this as the the older difficult fleet summary, this of coastal begin our expand franchise further to challenged, We our Inland removes in overhauls XXXX to the industry business defer profile the to trend rightsizes into transportation of this afford segment while intend reducing should XXXX much the some of improving the opportunity and overhang, to are fleet. participate while market as marine

Our distribution business has stronger. never and service been

field both segment segment a critical call guidance oil positioned was improving business overhaul of to the oil discuss to turn current abroad. for capabilities of of and now already our and and our to oil David of equipment, XXXX. integration prices. and for components domestically results legacy over the environment our the certainly This enhance well construction new field I’ll combination further has the & our a manufacturer Stevenson provider Stewart in the our leader as While

David Grzebinski

mainly was lower and compared pricing thank Inland coastal the capacity fourth and markets and to quarter, market, quarter. marine lower commodity weather. pricing by segment’s Good declines which level, transportation is contract to million of of favorable the the fourth income and both by everyone Thank mid-XX% marine petrochemical spot pricing quarter In decrease new per operating ranged marine approximately by margin declined in barge XX.X% million in marine XX.X also the marine impacted our The transportation retirement or to XX.X to X% Operating X.X% XXXX and term revenue compared XX% you were utilization. costs. and The and for or utilization XX.X segment $X.XX million. due a fourth our early Joe. normal for you, seasonal In share low aided joining XXX.X was us. XXXX severance million, was negatively transportation morning, our with XXXX

XXXX or than XX% in attributable price fourth XX% of of charters compared During quarter. the marine see Long-term, Spot delays challenged of spot fourth the time water slight along digits a we slightly XX% very mid contracts than approximately high Inland rates and with higher XX% tank barge transportation quarter. contributed single during however, and the did the of wind, were the months XXXX on quarter, renewed was XXXX, Demand the well as were quarter year of Inland contracts, on fourth low duration, contributed down affreightment. primarily and level first consistent that delays with by a The as those revenue to fourth the the longer to quarter of transportation by sector quarter the the XXXX. lock the end of marine Gulf the one revenue nine infrastructure in contracts more fog Contracts the during term the Inland operating year. to contracts conditions of the were improvement with transportation end toward Coast market Ohio for River. in from

transportation some operating generated XXXX further in costs our in Inland as quarter entered early the coastal the retirements. marine the in wasn’t was quarter, the impacted sector, more In by and mid-teens margin new and demand fourth workforce adversely industry muted. an sector remained exacerbated fourth oversupply the and During severance equipment the service

XX% out quarter, the petrochemicals were negatively temporarily refined of to transportation quarter. oil the Additional key more laid facilities. mid impacted Including term higher. of products lower majeure coast spot transportation a was our at compared market. while from from revenues utilization Revenues low barge one in contracts barges were were the of also barges, in black during range customer’s our expired, the by coastal Revenues XXXX tank the force and placing Kirby’s wise of event to fourth also the

as in including utilization. vessel and geographic capabilities try to is coastal market product below cash the vessel year-over-year, location, course contingent rates contract on size, dropped transported. guaranteed prices Regarding operators pricing, lock factors, flow various being spot of Pricing higher and have

As in of at clean both the barrel percentage the to the the and ago. contracts an The XX% than with year lower trading coastal pricing the term where XX,XXX on market. fourth quarter, a quarter, sequential example revenue under equipment spot in contracts XX%, lower a of approximately the XXXX approximately XXX,XXX in was XXXX was third to consistent Compared were revenue spot was as of quarter result of range stable. service term fourth rates spot in nine from months mainly first pricing

have and In XX required vessels sold total, in boats. action to or impair markets. and barges, XX the we mentioned, of retire water which tug many few will would we scrapped the years proactive system international Joe during treatment under-utilized retired retired non-competing into be next we quarter. installations As took ballast coastal These vessels or early

The the also in of shoreside base, in tank delivery will course coastal reduced improve high-single expenses was both quarter, one our over retired construction These took fourth barrels XXX,XXX negative and Inland our going fleet decrease tank retirements. during early early was the severance and barge including business seven barrel forward. and the barge operating of barges result With In retirement our digits, including retirements of and further total we in respect a resulted XX,XXX actions approximately to the utilization which severance eight capacity. Inland plans, of the one-time We reduction employee our the the of a quarter. quarter. margin net for expense workforce profitability for fourth

barge barrel retired In first one million we expect year XX the capacity. barrels XXXX, XXX tank tank XX,XXX representing take During we the of to Inland delivery of barges, closing barges, quarter. XX.X XXXX, in with

the with acquisition, million to barges, XXX,XXX XXXX us coast approximately X.X retire total return a to barges capacity early barrels of net of had basis, had In capacity. capacity. and year million expect We capacity. expect with with the barrels approximately the to XXX,XXX total retire On wise before representing barrels a barges sector, of end approximately of XXX marine XX.X or we of barrels XX any charters a also end

Our quarter any cycle recent delivery we do XXXX. and new coastal in third take to the any build barges of XXXX in plan concluded build or not

XX.X million financial from distribution This our incremental the including Stewart XXXX in operations can severance & Operating of the and expenses. was year-on-year our retirement XXXX the with segment, per and the to fourth the for share The quarter. margin and with this of our X.X%, quarter significant X.X% quarter based operating segment’s be performance for land contribution $X.XX revenues quarter. early was on Moving million in XXX.X increase X.X The compares were million. compares to Stevenson. fourth services operating income income attributed fourth for and

based for manufacturing new land constraints. would our to and businesses saw quarter, revenues and and sales demand higher During construction units of to that additional a were new also profits, pressure capacity contributed units integration engines been parts. the Early to pumping and as able due otherwise strong we the of have possible higher efforts not labor deliver new transmissions

businesses remanufacturing and pumping Additionally, our backlog land based overhauls. experienced steady of transmission pressure the units a for

During due from This services orders. third improved down to to and the our Rental the steady, the equipment sequentially, business distribution October of and to Marine December. quarter, decline. for overhauls hurricane it a operating demand a and digits inventories the the primarily to business, was higher November vendor premises was higher and of Gulf to our power the third transmissions in double revenues orders operating Operating result fourth elevated the and returned for during supply inland in for in speed quarter based started of higher year-over-year compared Coast decline for margin on engine medium transmission markets and primarily was in in were increased and units stacked elevated projects. revenues remanufacturing constraints due also demand slightly due sequentially timing to fourth of and the mix rebuilt power Florida. customer’s quarter. generation related In remained and parts number as cold normal Texas levels distribution market service the in in as marine holidays year-on-year, but new low the margins services generation market. in business offshore standby compared did the quarter. we in remained and major approach to drilling Though, Service December Demand in activity at of performance levels

Stewart Turning December million debt as & to a XXXX, total the XX, the acquisition. of Stevenson a XXXX, of of the balance XXX.X increase was result sheet, $XXX mainly versus as end million,

quarter XXXX to $X end million. the of from guidance the will full rate at $X.XX and and per to average tax January XXXX of XXXX quarter and the year. total include press share end per guidance XXXX. we for last the release per approximately share XXX a cap per to ranges XX, we on debt week, debt full $X.XX share. effective Our night, of $X.XX increase for year was $X.XX to These full tax XX.X%, last first guidance share to rate to of for discuss our our of now $X.XX $X.XX X.X% first quarter In fourth XXXX. ratio $X.XX our XX, Overall, lower our quarter announced guidance At was expect our the a benefit first the the XX.X%. I December of year

impact to segment standard and on is that pressure quarterly for new the timing result the completion revenue distribution unit expected new our range. reason this recognition revenue in will weather impact low range, orders. are delayed Inland includes a the they limits year. full until in of to first quarter is differences adoption quarter completed business, pumping revenue in expect the This negative percent transportation to across mid-XX% to standard primary EPS Full currently normal first accruals recognition Our related wider standard certain our our will similar delivery utilization be fourth of expect In marine we be materially the new temporary seasonal to for accrual the do what the we the quarter patterns $X.XX in We during new with these quarter. to experienced second orders a per services share the and results. revenue guidance with $X.XX year which not in

yield barge customer construction, overall new to that higher utilization tank demand improved consolidation XXXX. and We continued barge will industry retirements, expect tank XXXX minimal -- compared industry together

improvement mid-single half and As such, not of of improvement improvement assumes pricing sooner. single pricing mid we to half end will range second digit XXXX no digit in in the in end the The assumes if pricing modest the high XXXX, second low likely high guidance year. see our Inland of the

revenue retirement quarter, fourth contracts, our market, the low our with to We full from to mix term year. be our barges, similar spot to for XX% during mid-XX% our coastal expect considering to approximately be range revenue the the And with representing balance the coming the of utilization early of the expect first XXXX in the XXXX market. we both quarter and

declining by XX% at costs slightly being marine by Our contract guidance and the renewing levels a improvement range down of in half considers majority XXXX business. our prior to relative in XXXX, major which quarter. in expect reductions our lower offset market in pricing business, Inland the modest primarily to the renewed the with operating lagging second first contract driven beginning renewals, XX% of be in pricing coastal in transportation we effect the of to including Overall, the range on profit our occurring coastal XXXX contracts, year-on-year with segment

be cost will in still anticipate While savings will to the mid-single in remain impactful, that margins this these in our digits. throughout we ranging coastal XXXX, operating business negative do low

distribution our distribution segment, expect industry, which For approximately and oil services the demand XX% tied and of services revenue. land strong based represents and products our for to gas and continued we services

XXXX, and into of manufacturing to are of inventories expanding America our business. with in This plays rig expanded drilled increase completions activity in expected but to contribute only XX% and pumping While field expected our oriented growth oil this services. right are with modestly wheelhouse North well counts related to services pressure to much products in uncompleted excess

As X the another We pressure market. represents pumping next over are million horsepower years. XX% that capacity predicting one is to the of horsepower over X Joe analysts mentioned, in horsepower in million America believe working to needed additional needed XX% an North this of current two to

with customer that confident expanded incremental base improve We we will scale, participate in are opportunities. these meaningfully efficiencies, our and large newly

that and is as diesel overhauls many Marine expect longer availability as our chains be by higher engines, In declining services and growth are parts XXXX challenged. results new transmissions vendor distribution of it of somewhat possible sustainable. new and However, we that for could improved as our anticipate this constrained through parts maintenance engines, To market, year. in end, no are demand the we we deferrals spare progress supply

to margins Our with in power XXXX. expecting we're distribution to expected segment operating generation and Overall, in levels. high services business is digits single consistent be relatively the XXXX be our during

on million in and includes and and million XXX treatment including including associated boats improvements. horsepower new expected as six systems facility segment. million equipment, varying to tug the spending capital improvements balance well million XX Approximately, to equipment new progress XXX marine as rental is of million. to coastal and with year towboats This machinery XXX new announced to is for payments last range. to Inland horsepower largely XXXX capital as facility fleet, services XX Inland existing upgrades coastal be XXX vessels, X,XXX well in approximately improvements marine relates Our for coastal and some The ballast vessels distribution water as

half million In optimism older sold entered during fifteen transportation over marine result horsepower tank will quarters mirror delivered to our Inland a stronger take we to vessels vessels if fourth our for the in struggling restored poised We businesses. third actions. market. to our from acquisition during with rationalize that going efficient balance a the inflection we we years XXXX, the and not and did to barge in have remain or to to believe be is Demand Coast pursue XXXX the which will be cost an Inland retired loss our strong If sooner. five done occur sale. expected industry $XX approximately need and million But $X.X new second XXXX sheet, advantage follow conclusion, and they that the can pricing in the and to forward. Inland replace the less quarter, being part we to barges market. We're million ways, on of improve profitability opportunities XX period of towboats to expect towboats $XX others with more lead, are of delivered three accelerated the balance in appropriate XXXX. efficient and expected These fourth emerge industry’s downturn and our we of fleet industry will our the high

services commitment and these will quarter it intend distribution proven Our The date XXXX. growth. likely in profitable question acquisition very & a bright opportunities successful a remarks and I'd gained, Stevenson prepared discuss our We this segment to steadfast considerable synergies return for and service items. concludes segment ahead will of we we to few safety, has of to This capitalize other briefly with additional cost opportunity efficiencies and we be has answers, all unwavering spot the improved in to go be of year-on-year on and before do, Stewart to But customer to guidance. as and our our and like on remain capital. on fourth

Houston services Day distribution marine business. to please and Monday, in forthcoming XXXX calendar coming help XX First, transportation of the operations information to our weeks. the More for our this event your better held XX. is mark understand evening purpose to the The will Analyst throughout growing in May May you showcase and of be Tuesday Kirby's day in be

our helping the as of back efforts service our who aware, will been and be part Second, of business of the the are Brian be Stewart weeks. Brian rotating services operations year Relations for next team will working & you last our reorganization. leadership integration as leading into with the of Carey in couple into distribution some Investor Kirby has Stevenson

of forward, last Kirby. the Harvey Relations. who Hughes IR our Eric thank from to Investor paper dedicated function Going the Baker Brian MBA become chartered after of And like He Mechanical primarily of Operator, year Holcomb I'm will Eric new is later the University in led in new announce Kirby during and I'd Finance has take the an from now our Executive will be finally, CFO Bill his are of a role a best and Kirby Toronto service month to experience to than questions. effective join to Kirby. him as joined filed. as He industries. this his welcome financial for he VP as by recently years wish joins new CFO, as pleased has and energy the more President welcome University. in today Engineering me to is Vice Please and our XX a all BS from well XX-K and the Bill that analyst. as ready Queens we Bill


first Credit Our Instructions] comes [Operator from Gregory Suisse. question of Lewis

Gregory Lewis

downward looked so resets little at And revenue as put the spiked talk as you seems like forward, to about if to going pressure market, look we look we Inland contractor could it bit Inland business. the on a like But Inland continue It and David, roll-offs that. sequentially. are up

just of should -- sounds going Inland as what and to I'm QX about connect sounds it think kind the going like higher, dots be roll-offs, utilization revenues So like got down. we forward Inland looks it and but trying

David Grzebinski

Inland is it's maintained through carried up of on fourth the utilization after right a hurricane the the spiked in into We've been utilization. saw you in January. all higher range fourth to and and XX% it up but quarter, that's XX% frankly, level First, Harvey, quarter

you customer temporary a we just with crude just we've higher and market as added volume. and chemical in also in and has prices is some demand, or more helped pickup prices higher seen temporary and but customers crude with seeing that environment we're product refined our as had and know two and of that upsets these some whatnot, a delays which weather lock on a and that's plant coming volumes increase Now general then also plants had

optimism seems us of you frankly -- we to sustainable. as a inflection What look in temporary, pickup another portion the portion is So prepared as it a carried pickup quarter pricing, be comments, the some up bit heard market pricing starting end bottom of of our we quarter of gives at some a good little frankly and it the in the utilization to in of a pricing pick more is spot the good. end into to that's saw little with which the first fourth on but spot

So in inflection guidance, as as may put mid-year our might we said happen ’XX. you know, happening but know in you sooner, happen an that we It ’XX.

but before So in reset we're in contracts little your major a question revenue contracts all being year calling But reset have a it XXXX happened. lot we're the certainly and almost about hold, effect we a to And Greg, of through were closer. a has to know average cautious you could turn, good. if this But continues demand pretty the when our contracts, basically pricing that declines that and renewed when ‘XX. you full as the be

’XX. that only I tiny reset very contracts bit of need So there's in would have to reset say and our a most

margins So I margins and through Inland behind think Marine ’XX. that what largely essentially year-over-year we're looking we're and at flat are that

Gregory Lewis

to where these do in or supply your reason get the for rebuilding rebuilds? like the then the of as difficult the pressure shift fleet Is chain DNS, that to about of the equipment installed to part the is more reman of accelerating. steady just delays I looks was over Joe you guys for just need fact that you pumping in hands lack And on business it we equipment base guess it's talked expanding. that steadiness than

David Grzebinski

it. of part That's Yeah.

OEM and a but out. are more to busy our based lot and delivery continues lead our certainly build, business, it in services vendors’ seeing distribution we stretch are time land We time

the X will the X need think million horsepower. chains. that million What constrain growth is more does I to market So supply

But at growth our going the the to recognition all and tax guidance. business, as in the maybe guidance, the was And of in look of XXXX, about in one low and this, but the million Stevenson it end Stewart way based if Kirby's it look rates the addition you lot revenue you noise on low end XXX could all the I end. cut a & land high around got So for in would in million through with tell you say million. implies that that’s in end XXX we quarter and EBIT and high at EBIT XXX is our and if our

we’ve of supply we works If closer If happening part clearly or it's land more certainly we even and that be end, the on well, So end. XXXX. chain to got the we’d the the base really is will growth see. but the could in in high a constrained, big middle the be low

ramping ratable are our encouraged discipline, it. towards little customers, they been as working the the more and vendors can best everybody's up pumping customers their have cycle am Our capacity capital is that I a than and the pressure it E&P customers so even their has more in past.

essentially flat listen to capital Schlumberger’s they're We’re year-over-year. expenditure just seeing if Halliburton a little and plans, you and more discipline

actually that a more cycle has could So means that it legs. longer ratable It that. encouraged by we're be

Joe Pyne

hopeful the should volatile, little let really be should just will the ratable And business. side remanufacturing David, cycle, it through me remanufacturing the be last that a steadier. we're will side but a current of side more be It more manufacturing add that the


from Our Wells Michael question Webber comes of next Fargo.

Michael Webber

pricing. remainder maybe and you're out along that's when have David, And that -- actual percentage -- of I would first point that on, much portfolio actually haven't there looks follow the this up coastal, maybe basis, Inland get then the to on retracted of half and the actually of question, number it of bottomed much kind really of how annualization the of if of at move the you think on maybe kind to what how your most like the in that the guiding your wanted slightly EBIT, year-on-year a put just to but about, on would we Can lines lower Greg’s coming of a of businesses tail business, repriced. repriced year? first marine would actually get trans

David Grzebinski

Yeah. It’s very little.

of matter prepared in it's we one ’XX, course, first of you ’XX. repriced small. of major And fact, major part contract Almost is a the comments, as every As a reprice. heard pretty had through the

very So going We're XXXX. little in there's through. much to reprice really pretty that's

Michael Webber

are thought part my those [indiscernible], Inland you is has that see then capacity you the digesting bunch in S&S, the coastal know, I And lingering curious I just way about guess market, space same for guys question about come consolidation maybe the will after you're on a of when just there the out. the to start coastal just to two-fold. scenario is fact all a given is, better she at the guess, which a the of in marketing out. look been you that you think done, starting I ATBs eventually have but come market, decade, some One,

longer So is curious would nonstarter you whether when that think and that a uptick movements corollary you entertain LNS I’m assets the whether up kind then to curious some starting as you I'm it about be some seems or that, around in there. market, to Florida. just it's are of for a any should like you support haul for just seeing something larger

David Grzebinski

do our the coastwise start you in the I early at impairment to the that same. And will of we same. assets, We bring in ballast they think is think and do balance. when side, retirement treatment, need on some water Well a which did to of step competitors looking the an good back we market the

of the it. about come bottom of we to with of out certainly could we the come sooner terms in we’re balance market into and So of reached get consolidating, we’re the market, of out bottom but Inland -- coastal about the back to the

I is consider do it'll So, Inland focus really consolidating coastwise on be acquisitions think before a our while now. acquisition. we'd consolidating

to But is in coastwise do think Our the one news an market. real now. preference I the be would positive Inland

We're spread that hearing here little WTI up There's are more in Brent utilization recently. the booked MR tick up. said, helps. you been tankers a As

weather some northeast I in think of certainly that's that’s helping. cold the

Our steps capacity to helping to need and you equipment OSG, think same. some some older the to got is I plans retire do take they've out as others mentioned, and

help others So, the part ballast part we're doing get We're treatment need going in their decision and we to and water constructive. we industry point. our do the is that to that them feel to


Atkins Jack Our of next Stephens. question from comes

Jack Atkins

renewal contract not single you, repriced just that earlier, to I'm digits pricing I of midpoint if a around were rate contracts lot from is XXXX, think mean you being the don't have around of just understand is in the mid-upper guess that I but contractual referencing you terms cadence I -- coming where to David, -- Is expecting, a I year. that in So of if if up about up trying guess incremental guidance renewals. are going we contracts this back that lot think

David Grzebinski


I'm on Jack. if clear, that. be was me Let sorry I confusing

I and very XX% that probably current then another the reprices pricing, pricing -- mostly got clearly, And remains. that a have and some contracts every as XX%, spot piece the what reflect a We we low throughout didn't annually say the we've spot our multi-year term of is group contracts And group then we portfolio we've that that repricing have got time. you've discuss then and current have of market. of low contracts are longer us this reprice XX% real year heard pieces, the but see our

if group an that in will inflection in help? of we XXXX, contracts point, XXXX. some see As Does that that of reprices there's

Jack Atkins

that thought page I was was chunk I good there to the just I that you. Thank make a annually. on renewed sure, same there. wanted does. It think

mid-XXs of then your for think sense. of for utilization moment, makes of follow-up sort operations, it to contractual the the price, this higher mean And kind and where the than definitely do seems right of like if so taking at start seems get even long like I do you that industry or have been now. sticking because the at, feel industry, or historically, to do pricing just have question, this actually we it's Inland level you maybe so, it why end it, trending, that to of assets really entire guys you utilization, at so because with recover? a think like call and upper see quality begun industry trending but my you already is So would of downcycle sits

David Grzebinski

question. Good

to XX% was Our as XX%. I said utilization

of kind to industry's even saw a below that, of as the in we I and low the the improvement little on to little January. you fourth bit maybe of spot quarter, that’s here a think heard, continued mid-XXs And high-XXs, at low-XXs. pricing maybe end the

pricing And to now. to up. pricing have So too contract happen you the increase spot early have it's what you getting is can has the start that before right call just to

in just some to Some this is continues, higher. pricing the renewing very constructive. my start to for earlier of if could comments, to and and continue I weather strengthen related But be It's with that said plant to need as it, say temporary disruptions. it too spot early contracts we

Joe Pyne

of utilization that rates, that's see move to they -- add confidence so going The rates, rates, I utilization that pricing maintain to has these rates me on that there's is and you David, think that that the begin that’s confidence component have encouraging. based in pricing industry confidence. the stick. to to another let if market And you're and think just going to


comes Our of next from question Jon Chappell Evercore.

Jon Chappell

coastal much fleet, your the million How barrels the share in on about be that X guys where estimate quarter see inflection taking market to barrels, to can part side. utilization X% out you you've you an the to by more get did removed market One balance a If in the if industry? million is your done of for you get XX needs the the about of what's and Why pricing? overcapacity?

David Grzebinski

estimate, needs XXX,XXX did an to say This Yeah. just We capacity but I'd X barrels come million X.X to million barrels. is of out.

say. quarter So of -- of kind and we're market as a the you

than had in So lot can sooner part, back balance to we if we a their gone. others do originally get

Jon Chappell

of XXX,XXX And excess I'm to your that? that X sorry, inclusive is X.X that of or in was

David Grzebinski

excess. Yeah. In

Jon Chappell

or so. petrochemical new lot years and prices so. in it like out actually, energy to up But pushed whether slated XX to the It finally was now. continue that this we've months every then online six the something was next a prepared closer Joe’s but seen think And I it I investment two remarks right, in get build or is cetera, petrochemical revisit to we seems or come et think maybe plants just

of as any clarity plants, capacity better Inland these there these what get ramp nameplate is up closer to we mean plants as their in these demand. So new for the barge and to liquids may pellets versus

David Grzebinski

potential of Yeah. our about we’re We're discussions some having getting multi-year closer, more we're more barge specific their got we've with, that particularly detailed getting customers barge with moves, agreements around but into detailed yes, needs. actually we're the because I about getting detail is barge which get is discussions specific, pretty don't much moves, into too want exciting. more to it customer

Now going are again, it's X% this going XX% barges many I It's a you derivative increase derivative down add it's is chemical or of and just liquid big in the going chemical we to plastics. into the hard be, for go me know to that me be is it. to look to at into it if something pellets still ethylene plant to say. hard to the that’s is ask but side really GDP then how pretty go being XX% nail plants, capacity, hard announced, roughly the will plants and to it. will When --

we're of and barges. So I than to their about avoid down it's the that. will some number to some discussions trade trying barge lanes we've it the of nail moves needs. hard customers some other say to tough of number specific. having in not really this methanol moving, our in get ethanol. of more seeing just We’ve It's picked definitive it to it's we're barges -- But with a specific We're still getting just the we're little major and other bit up seen

too say, to but where like us it’s it's barges, So John. you we that's I know say that, to kind are. of just difficult ex-XXX still


Our Jefferies. next of Giveans comes question from Randy

Randy Giveans

the clearly, and covered call lot. press So a release your

few So that earnings? S&S to you contributed earnings. What quarter, just quick $X.XX per Last was XQ said questions. XQ a XX contribution for share

David Grzebinski

$X.XX. Yeah. about was It

Randy Giveans

good Okay. run forward? going rate is a And that

David Grzebinski

for and Yeah. businesses businesses growth add going add more to Well, our can those more annualize two and synergies. for But it's S&S we're with based be you and little that again, at then for bit United break and S&S. land merging and bit a difficult us a to little out

and you’ll we'll hear try is us going distribution XX% start that of and about a to what feel services, So, for and forward. oil about in it talk give and you is gas

the will and commercial we'll Another XX% marine talk XX% be will remaining power industrial generation be probably and and to that. and

the then of margin. split terms mid excuse each and is splits revenue If terms digits of me and oil you in of and like in manufacturing digits are the two in gas segments other high think more margins high single are XX-XX-XX those more single to or

going We thinking able were quarter we ability able orders together, merge might more them them as capability run share seamlessly. So synergies you as it that to in because think and to about out about you for expect, as our frankly and the fourth way building in to start and because between we're we're a And model, manufacturing businesses, we United saw we to inbound were that. of finding them. putting capture would do S&S you the looking

and harder S&S So it's just going to be to talk it specific. about harder

Randy Giveans

looking in for so. think or so business, Secondly, acquisition was your at the $XX back June I million last marine transportation announced

clearly in years. buyer has a downturn So the over been the Kirby past

guess So over this seven just asking there the of I lack last has acquisitions why been months. six or

David Grzebinski

emerging here cycle. Nobody to of you the acquisitions, wants of to have history the the really be the Typically but can Joe you the on all typically cycle. bottom from give the at and bottom sell

liberty in this there calls, get at our to I'm we're As some acquisitions talk to order bottom typically transactions to coming thoughts going. time, we've your the around you sharing you in discussions. said at history not these would that? out but in Joe, any have be and about mind earlier of Frankly,

Joe Pyne

that David, take to it sometimes seller factors that have an There a negotiations acquisition shelf deciding off when different This that we are to years. bear you a said of the think take go shelf. the These isn't the to sell. to I look correctly. you is store, come at to lot something go and

is is I to clearly David's we still a we're be in think the I in going for add and environment would thing the rationalization excellent further that to participant comments a -- only guess that it. that the business think I

Randy Giveans

of their Some of or to two operators let last keen not smaller really are three these barges. go

So make sense.


comes Our Kevin of Global. next question Seaport Sterling from

Kevin Sterling

mind David, pricing differently. the maybe question you little ask let me a if don't

we as pricing to happen get are yet. we A answering, a to think and pricing but you color have it in think XXXX, have what even they've it been -- of operators to dynamics go do the on way as look have never given me increase half and below really materialized a we well might where we it pricing business, acting that about is ’XX, this a like spot haven't are always of some rates the to we they they them seems but well You Inland back that job for up and would guys side, operators, good and need Inland or now be. is in to to the changed you always trafficking thought time are needs behavior. that I question great the pricing couple this It contract market few below pressuring their in change the at seems

what maybe and price essentially these see So we need that behavior get more will to guys do change to their rationally.

David Grzebinski

low competitors market. little specific, of spot a has competitor end or We're up the one the Well turned low I two see rates happy think Yeah. but but movement in we're be at to aggressive for things. to starting that, and not up of termed they’ve the

to barge a think the picked across that's spot indicates to good market's the little equipment some tighter everybody's it's the scarce barges. guys have helps utilization the I the up, frankly So board, that are termed pressure with go We aggressive out and have a much don't short up. sign. market of It and good They having mindset. as here

toward think to that and it’s So where that too to soon we it's say wanted Kevin I be, we're marching there. just

turned has some think having we what what happen. the up and think guys to aggressive definitely I to needs happen is begun of

Kevin Sterling

how the follow it the other that's know equipment? some there? operators guess get in still in I from equipment ones how particular switching equipment, and calling like roughly, I have coastal guys are but where we we get you if in improvement the utilization we are you a is, pulling I do low-XXs, your XX% guess, low-XXs outlook, looks coastal, then guys retired it lead, off almost that scrapping guys gears or utilization scrapping don't coastal get today. can to we only if to And some you for your the are water, question are David, to low-XXs do that

David Grzebinski

Well, pretty our customers feel we've took our utilization range. about we good out year utilization for XX and of because XX% XX% the keeping the got to a And barges. good that basically pretty portfolio in jump

they've think ballast bring shipyards. to just fact I competitors at do It’s to are water going going other these older the looking got vessels to that the same. in be for treatment. They're

our be again, business, about I'm the will share there optimistic our better. heard our be not I going maybe more certainly scrapping and still say a up. but coastal utilization We're getting more painful. it's Hard So think we – little when, coastal guidance to a year, share, but it you the feeling it’s did for tighten and this but whole little to industry’s will more than

Kevin Sterling

that dynamic the don't trafficking spot that the where seeing coastal, same aggressively and Okay. it to be necessarily in And market is got when we're need really they pricing in are similar operators just dynamic. you've few a is that Inland

David Grzebinski

bad. as not But Yeah.

and painful contract is down working. -- the cash and prices, what's flow smaller different it's and painful will I be them in capacity increments think so in It’s people of the to are push lock every big idle, to just these moving. the keep not little for market, Inland less market units really happening a up Inland they're

chase So you little can deals. spot

hundreds spot contracts, is -- the be a and I away to want very coastwise miles think there's move in term moves market, spot for can reposition just costly. of lot people because the of

there's that's coastwise contracts rush get more and markets -- try pain in because made the the I think contracts. to what's So a acute, term


Our from & next Justin Company. of Bergner Gabelli comes question

Justin Bergner

treatment the an were be XX retired water for or pulling ballast out questions. quick them. Of sort of are issue to Two you you reasons? ballast due versus due clarification XX many that guys water mentioned service, of of those barges the soon that was number that coastal a of other how for Approximately, are treatment for

David Grzebinski

top that have my off the don't I of head. right

three. or two it’s think I

Justin Bergner

three others didn't? and or Two had the ballast the issue water

David Grzebinski


Justin Bergner

you that what on was low market question, just spot the said to exactly want clarification the improving sure meant understood second a I you make And I when end.

that you what means. if just could So clarify

David Grzebinski

a spot and higher markets guys aggressively. going aggressive is so low end, I aggressive spot pricing when the Our little it’s than after usually the business say

the kind of spot we've up. of done So come low deals and market the the end seen

Justin Bergner

then And just year. release trying players there the are press or mentions that barge that Inland your consolidate own market Inland consolidation favorable to competitor your the potential meant that other to primarily? driver suggesting coming ambitions to the was Are lastly, also market barge refer for you as over a are

David Grzebinski

our oil bought decent and of have of series there other Well, that from other actually shippers, own balance consolidate. a that company our one barges so competitors one ambitions, we They are sheets it’s a some they're the but competitors, certainly helping for fairly major there of barge fleet. example, their has know

list to market, you as but biggest that's other in used for be Now, smaller they're perspective, in with -- looking that industry. a lot the But that get consolidator sure approach But rational not as consolidation you than their better. more and good. buying still, my competitors business business opportunities there even that. compete as is we've any marches have to in and it I'm know. that's fewer well, or and on, right, is more XX any competitors, there The good this for for From any the of been -- couple own business, will to smaller players know as be is time just us, But book fewer consolidation well so reasonably capitalized but would so are that's better. primarily


of question from next David is Our Beard Coker Palmer.

David Beard

terms David, I barges your demand of what's supply terms then or will in do XX thoughts think the corollary the with those And returning, to trade for market you scrapped the industry expect spot that you’re to your some in to or get scrapping? in order you the wanted the always book and of what thoughts of those be there.

David Grzebinski

be in XX understand they're terms building vast one XX of series for competitors barges those of majority a barges of XX about in rough got direct Inland believe our is of will will tens replacement that be we demand, that and supply that built retiring. Well Yeah. and to we barges The some supply, XXXX. estimate old old about

for there said, built XX So, majority the in XXXX, as I XX vast to barges replacement. is, being but

that. adds worried just it I too replacement. It's to not think we're So about the don't overhang.

we’ll barges, know In I We to watch. But do they be whether terms think will in do of barges. David, not, the or may it's I up, the that's noise with things what now. our honest, the them. what if sorry. to don't to charter they charter tighten normal know mind barges I that's those And out will but have but find market. as of our and plans will with returning your back compete keep they adjust don't just and come I’m change something what

chartered are are away are charter XX come those and a back me here. all not XX only about Let of and to just note got I handed five that. Actually, the owned. that going are it's

would up. be cut apologize those So I for that.

Eric Holcomb

Thank you, for today. your everyone in call in Okay. Corporation interest our participating and Kirby

nice additional any comments, at day. you directly a can Thank me at have have or XXXXXXXXXX. you If questions Brian reach Carey you and or XXXXXXXXXX


you for presentation. conference The now is today’s attending concluded. Thank

may You disconnect. now