Item 2.02. Results of Operations and Financial Condition.
On July 28, 2022, Kirby Corporation ("Kirby" or the "Company") issued a press
release announcing results for the second quarter ended June 30, 2022. A copy of
the press release is attached as Exhibit 99.1 to this report.
Adjusted EBITDA, a non-GAAP financial measure, is used in the press release.
Kirby defines Adjusted EBITDA as net earnings attributable to Kirby before
interest expense, taxes on income, depreciation and amortization, impairment of
long-lived assets and impairment of goodwill. Kirby has historically evaluated
its operating performance using numerous measures, one of which is Adjusted
EBITDA. Adjusted EBITDA is presented because of its wide acceptance as a
financial indicator. Adjusted EBITDA is one of the performance measures used in
Kirby's incentive bonus plan. Adjusted EBITDA is also used by rating agencies in
determining Kirby's credit rating and by analysts publishing research reports on
Kirby, as well as by investors and investment bankers generally in valuing
companies. A quantitative reconciliation of Adjusted EBITDA to net earnings
attributable to Kirby for the 2022 and 2021 second quarters and first six months
is included in the press release. Adjusted EBITDA is not a calculation based on
generally accepted accounting principles and should not be considered as an
alternative to, but should only be considered in conjunction with, Kirby's GAAP
The press release also includes non-GAAP financial measures which exclude
certain one-time items, including earnings before taxes on income (excluding
one-time items), net earnings attributable to Kirby (excluding one-time items),
and diluted earnings per share (excluding one-time items). A reconciliation of
these measures with GAAP is included in the press release. Management believes
that the exclusion of certain one-time items from these financial measures
enables it and investors to assess and understand operating performance,
especially when comparing those results with previous and subsequent periods or
forecasting performance for future periods, primarily because management views
the excluded items to be outside of Kirby's normal operating results. The press
release also includes free cash flow, a non-GAAP financial measure, which Kirby
defines as net cash provided by operating activities less capital expenditures.
A reconciliation of free cash flow with GAAP is included in the press release.
Kirby uses free cash flow to assess and forecast cash flow and to provide
additional disclosures on the Company's liquidity as a result of uncertainty
surrounding the COVID-19 pandemic on global and regional market conditions. Free
cash flow does not imply the amount of residual cash flow available for
discretionary expenditures as it excludes mandatory debt service requirements
and other non-discretionary expenditures. These non-GAAP financial measures are
not calculations based on generally accepted accounting principles and should
not be considered as an alternative to, but should only be considered in
conjunction with Kirby's GAAP financial information.
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