Kirby : 4Q 2021 Earnings Presentation

4Q 2021

Earnings Conference Call

January 27, 2022

Disclosures

Forward Looking Statements

Statements contained in this conference call with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including cyclical or other downturns in demand, significant pricing competition, unanticipated additions to industry capacity, changes in the Jones Act or in U.S. maritime policy and practice, fuel costs, interest rates, weather conditions and timing, magnitude and number of acquisitions made by Kirby, and the impact of the COVID-19 pandemic and the related response of governments on global and regional market conditions. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby's annual report on Form 10-K for the year ended December 31, 2020.

Non-GAAP Financial Measures

This conference call may refer to certain non-GAAP or adjusted financial measures. Kirby uses certain non-GAAP financial measures to review performance including: Adjusted EBITDA; operating income (excluding one-time items); 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). 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 the company's normal operating results. Kirby also uses free cash flow, which is defined as net cash provided by operating activities less capital expenditures, to assess and forecast cash flow and to provide additional disclosures on the Company's liquidity as a result of uncertainty surrounding the impact of 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. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings press release, and are also available on our website at www.kirbycorp.comin the Investor Relations section under Financials.

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4Q 2021 Overview

Financial Summary

$ millions except earnings (loss) per share		4Q 2021		4Q 2020	Variance	%		3Q 2021	Variance	%
Revenues	$	591.3		$ 489.8	$ 101.5	21%		$ 598.9	$ (7.6)	-1%
Operating income (loss)		31.6		24.8	6.8	27%		(316.9)	348.5	110%
Net earnings (loss) attributable to Kirby		11.0		22.2	(11.2)	-50%		(264.7)	275.7	104%
Earnings (loss) per share		0.18		0.37	(0.19)	-51%		(4.41)	4.59	104%
Excluding one-time items:
Operating income2		31.6		24.8	6.8	27%		23.8	7.8	33%
Net earnings attributable to Kirby1,2		16.7		22.2	(5.5)	-25%		10.3	6.4	62%
Earnings per share1,2		0.27		0.37	(0.10)	-27%		0.17	0.10	59%

Note: For more information, see the Reconciliation of GAAP to Non-GAAP Financial Measures Excluding One-Time Items on Kirby's website at www.kirbycorp.com in the Investor Relations section under Financials.

1. Fourth quarter 2021 net earnings attributable to Kirby and earnings per share exclude a deferred tax provision related to a change in Louisiana state tax law totaling $5.7 million or $0.09 per share.
2. Third quarter 2021 operating income, net earnings attributable to Kirby, and earnings per share exclude impairments of long-lived assets and goodwill related to coastal marine transportation totaling $340.7 million before-tax, $275.0 million after-tax, or $4.58 per share.

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FY 2021 Overview

Financial Summary

	($ millions except earnings per share)	2021		2020	Variance	%
	Revenues	$ 2,246.7		$ 2,171.4	$ 75.3	3%
	Operating loss	(258.1)		(420.8)	162.7	39%
	Net earnings (loss) attributable to Kirby	(247.0)		(272.5)	25.5	9%
	Earnings (loss) per share	(4.11)		(4.55)	0.44	10%
	Excluding one-time items:
	Operating income1,2	82.6			140.5	(57.9)	-41%
	Net earnings attributable to Kirby1,2	33.7			110.0	(76.3)	-69%
	Earnings per share1,2	0.56		1.84	(1.28)	-70%

Note: For more information, see the Reconciliation of GAAP to Non-GAAP Financial Measures Excluding One-Time Items on Kirby's website at www.kirbycorp.com in the Investor Relations section under Financials.

1. 2021 operating income, net earnings attributable to Kirby, and earnings per share exclude the following one-time items:
2. • Impairments of long-lived assets and goodwill related to coastal marine transportation totaling $340.7 million before-tax, $275.0 million after-tax, or $4.58 per share; and
   • Deferred tax provision related to a change in Louisiana state tax law totaling $5.7 million or $0.09 per share
3. 2020 operating income, net earnings attributable to Kirby, and earnings per share exclude the following one-time items:
4. • Income tax benefit related to 2018 and 2019 net operating loss carrybacks under the U.S. Coronavirus Aid, Relief, and Economic Security Act of $50.8 million or $0.85 per share; and
   • Impairments of goodwill, intangible assets, fixed assets, and inventory related to distribution and services totaling $561.3 million before-tax, $433.3 million after-tax, or $7.24 per share

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Marine Transportation - 4Q Overview

Inland

• Improved market conditions and volumes
• • Barge utilization in the mid-to high 80% range with rates near 90% for much of December
  • Spot market rates increased sequentially and year-on-year
  • Term contract rates renewed higher for the first time since the start of the pandemic
• Poor weather contributed to a 55% sequential increase in delay days
• COVID-19Omicron variant negatively impacted operations in December
• • Crewing challenges contributed to lost revenue and increased costs
  • Total impact to the fourth quarter of $0.01 to $0.02 per share
• Significant revenue growth with operating margins approaching 10%

Coastal

• Market conditions were stable
• Barge utilization improved into the 90% range aided by the 3Q retirement of idled tank barges
• Exited the Hawaii market as of December 31, 2021
• Smaller, more efficient, and cost-competitive fleet of 31 barges going forward

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