January 3, 2007
Kirby buys tank barges
Kirby Corporation (NYSE: KEX) announced today the purchase of the stock of Coastal Towing, Inc., the owner of 37 inland black oil tank barges, for approximately $19.3 million in cash, subject to post closing working capital adjustments.
Kirby has been operating the Coastal tank barges since October 2002 under a barge management agreement.
Kirby also announced the purchase of 21 tank barges from Cypress Barge Leasing, LLC for $15.0 million in cash. Kirby has been leasing the barges since 1994 when the leases were assigned to Kirby as part of Kirby's purchase of the tank barge fleet of The Dow Chemical Company.
Both the Coastal and the Cypress purchases were financed through Kirby's $250 million revolving credit facility.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Kirby always prefers to own rather than lease whenever possible due to the tax advantages of ownership. We anticipate the two purchases will be slightly accretive to 2007 earnings per share. EBITDA from these purchases for 2007 is projected at approximately $11 million."
Kirby also confirmed its 2006 fourth quarter earnings per share guidance of $.40 to $.45 and 2006 year guidance of $1.74 to $1.79. The guidance represents a 5% to 18% increase over reported 2005 fourth quarter net earnings of $.38 per share and a 31% to 35% increase over the 2005 net earnings of $1.33 per share.