This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kirby's CEO Discusses Acquisition Of Allied Transportation Conference Call (Transcript)

I will now turn the call over to Joe.

Joseph H. Pyne

Thank you, Steve. I’m going to do the prepared remarks. David, Greg and Jim will be available to help us with questions. We are pleased to announce our agreement with Allied Transportation Company. The Allied fleet is comprised of 10 coastwise tank barges, three offshore dry cargo bulk barges and tugboats. The total value of the transaction is approximately $116 million and this includes $10 million that will be paid contingent on developments with the U.S. Farm Bill.

The purchase of Allied’s costal barge and tugboat fleet adds product diversification to our Kirby Offshore Marine segment. 90% of Allied’s tank barges are under term contracts with petrochemical customers. Kirby has existing relationships with most of these customers in our Inland Marine segment. Allied’s offshore tank barge operations will position Kirby to strengthen and to grow and to continue to grow the coastwise petrochemical business.

This is an attractive acquisition for several reasons. Allied is a great platform from which to grow our petrochemical business. We have thoroughly vetted this equipment, which we are buying and are comfortable with it well-maintain. Their synergies from cross selling opportunities which will help us service our inland petrochemical customers as well.

Allied’s revenue and adjusted EBITDA for the last trailing four quarters were approximately $78 million in revenue and $16.1 million in EBITDA. 80% of Allied’s 2011 revenue was driven by the transportation of petrochemicals predominantly under multi-year contracts. The remaining 20% of the 2011 revenue was derived from employing Allied’s three dry cargo barges and the transportation of sugar and other dry products between Florida and East Coast ports.

As many of you know, we already have a position in the coastwise dry bulk business owning four tugboat units with two additional units currently under construction. We expect to close the acquisition in late third quarter or early fourth quarter of this year with a positive earnings impact or with the positive earnings impact on our [2000] results most offset by one-time transaction related expenses.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,079.36 -295.40 -1.80%
S&P 500 1,918.82 -32.31 -1.66%
NASDAQ 4,678.6950 -54.8020 -1.16%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs