Kirby : Reconciliation of GAAP net earnings attributable to Kirby to non-GAAP EBITDA Q4 2021

KIRBY CORPORATION

Reconciliation of GAAP to Non-GAAP Financial Measure

Kirby reports its financial results in accordance with generally accepted accounting principles (GAAP). However, Kirby believes that the non-GAAP financial measure Adjusted EBITDA is useful in managing Kirby's businesses and evaluating Kirby's performance.

Adjusted EBITDA, which Kirby defines as net earnings (loss) attributable to Kirby before interest expense, taxes on income, depreciation and amortization, impairment of long-lived assets, and impairment of goodwill is used because of its wide acceptance as a measure of operating profitability before non-operating expenses (interest and taxes) and noncash charges (depreciation and amortization, impairment of long-lived assets, and impairment of goodwill). 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.

This non-GAAP financial measure is not a substitute for GAAP financial results and should only be considered in conjunction with Kirby's financial information that is presented in accordance with GAAP.

Quantitative reconciliations of GAAP net earnings attributable to Kirby to Non-GAAP Adjusted EBITDA are provided in the following tables.

Prepared on: January 27, 2022

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KIRBY CORPORATION

Reconciliation of GAAP Net Earnings Attributable to Kirby to Non-GAAP Adjusted EBITDA

	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
($ in millions)
Net earnings (loss) attributable to Kirby	$ (247.0)	$ (272.5)	$142.4	$ 78.5	$313.2	$141.4	$226.7	$282.0	$253.1	$209.4
Interest expense	42.5	48.7	56.0	46.9	21.5	17.7	18.8	21.5	27.9	24.4
Provision (benefit) for taxes on income	(43.8)	(189.8)	46.8	35.0	(240.8)	85.0	133.7	169.8	152.3	127.9
Impairment of long-lived assets	121.7	165.3	-	82.7	105.7	-	-	-	-	-
Impairment of goodwill	219.0	388.0	-	2.7	-	-	-	-	-	-
Depreciation and amortization	213.7		219.9		219.6		225.0		202.8		200.9		192.2		169.3		164.4		145.2
Adjusted EBITDA, Non-GAAP	$ 306.1	$ 359.6	$464.8	$470.8	$402.4	$445.0	$571.4	$642.6	$597.7	$506.9

Prepared on: January 27, 2022

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KIRBY CORPORATION

Reconciliation of GAAP Net Earnings (Loss) Attributable to Kirby to Non-GAAP Adjusted EBITDA

Net earnings (loss) attributable to Kirby Interest expense

Provision (benefit) for taxes on income Impairment of long-lived assets Impairment of goodwill Depreciation and amortization

Adjusted EBITDA, Non-GAAP

	Three Months Ended		Three Months Ended		Three Months Ended		Three Months Ended			Year to Date
		March 31,				June 30,		September 30,			December 31,			December 31,
											($ in millions)
		2021		2020			2021		2020	2021		2020			2021		2020			2021		2020
	$	(3.4)	$	(347.2)	$	10.2	$	25.0	$ (264.7)	$	27.4	$	10.9	$	22.3	$	(247.0)	$	(272.5)
		11.0		12.8			10.7		12.7	10.5		11.8			10.3		11.4			42.5		48.7
		(0.9)		(172.8)			5.5		(1.4)	(60.5)		(8.4)			12.1		(7.2)			(43.8)		(189.8)
		-		165.3			-		-	121.7		-			-		-			121.7		165.3
		-		388.0			-		-	219.0		-			-		-			219.0		388.0
		54.9		55.7			55.1		54.5		53.5		54.9			50.2		54.8			213.7		219.9
	$	61.6	$	101.8	$	81.5	$	90.8	$ 79.5	$	85.7	$	83.5	$	81.3	$	306.1	$	359.6

Prepared on: January 27, 2022

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