Kirby (KEX) 1 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the Kirby Corporation 2023 Fourth Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Kurt Niemietz Kirby's VP of Investor Relations and Treasurer. Please go ahead.

you Call. the thank Fourth Corporation and Earnings Quarter morning, for Kirby joining XXXX Good today David Vice me and Financial With are Raj Executive and Officer. Kumar, Officer; Chief Kirby's Executive President Chief Grzebinski, and Kirby's President slide as Earnings well today be Release, call website. our earlier the found issued presentation on for was A conference can as today's which .

directly measures non-GAAP During financial measures. adjusted included this non-GAAP financial to Earnings and certain measures or Press conference financial under in call, on are to we Investor comparable the our in also Financials. most of Relations section are our may the GAAP the refer Release Reconciliations website available

reasonable statements future to future judgment respect contained reminder, conference this events. to a are call These the statements. with management's with As forward-looking respect in reflect statements

uncertainties, statements can that, in our result a the time these Form with filing in With over various risks to Forward-looking now the to could SEC those from XX-K from call differ anticipated risk actual and found of David. turn and made list as other I involve filings materially latest time. factors factors. A of Kirby's will be our results and

of and $XXX $X.XX. XXXX, announced today, everyone. morning, quarter revenue $X.XX. revenue of share fourth quarter fourth earnings of Kurt, Earlier share This and you, million Thank per per good earnings to and we of compares million $XXX

in significant year-over-year contracts and on our Services demand higher quarter, were strong pricing a headwind benefited our winter in weather continued the resulted revenues strong Rental of a fundamentals sequentially, from proved to in quarter. Distribution third In growth our Spot to down barge in our growth note, and we of fourth and while and demand seasonal availability high as the to mid-single range. were slightly strong we anticipate on rates the utilization be in prices in margins with and continue continue the both utilization strong year-over-year. year limited quarter Power from a to During to term barges, we good onset low Marine mid-teens low We earnings. sequentially of Inland experience ended the in Marine, but business XX% digits the revenue our efficiency typical the barge and spot result then push in and lower Transportation, demand delivered higher, impact. up and In XXXX. businesses and market conditions

were single year-over-year Pricing increases the on in contract average term on the during up renewals quarter. high digits

was sequentially, in the operations the days marine [ and up remain for with inland the operating on with to offset teens utilization high margins ] remaining this, our of average. during challenged efficiency allowing quarter margins the sequentially late XX% While strong flat pricing mostly

the maintain water demand consistent Marine were our during equipment planned we Marine customer treatment barge In mid-XX% pricing business, up saw in quarter as reduced availability. Coastal maintenance sequentially, helped the spot than offset contract which utilization more and Overall, low revenues improved X% term Coastal to and installations, that ballast fourth range.

was digits able year margins low with quarter. the in business for to Coastal the finish single result, a As the the operating

up new revenues In and by In backlog execution as lingering Distribution marked in income solid a segment, sequentially and sequential supply on the fourth demand steady backlog. year-over-year, throughout partially increases of by revenues, delays. and Gas, much quarter our Oil and and Services, chain were remained in in increase and deliveries the operating offset orders were steady

the single supply in high business Despite up very the seasonal In quarter, winter sequentially, lingering the strength segment weather margins revenues quarter concluded decline the digits. while weakness, were Overall, year weaknesses higher, temporary helping seasonal chain and the operating segment in rates both Power in were the business up Industrial, Commercial the seasonal for our Rentals -- falloff revenues operating segments. our of in sequential reflected led Despite strong. were fourth to offset In the and strong inflation. a XX% to income. issues year-over-year market headwinds summary, to push in ongoing Inland conditions results and is continue and market overall

revenue term While very was our Coastal supply by challenged dynamics industry-wide planned shipyards, demand favorable. remain near and

the and fourth about outlook the supply we to to demand Steady rate utilization our Services further in Our XXXX segment. over turn contributing Raj growth segment And are But increases. are call is and market is to more sheet talk the results in balance stable. expected, outlook quarter is the Distribution discuss for I'll and later. while first, good, detail. I'll healthy chain in more bottlenecks the realizing

income you, of operating XX%. XXXX, XX%. quarter million Compared by to in operating and million was Inland of revenues or were by shipyards. Marine utilization In good million and revenues pricing everyone. inefficiencies increased the Thank or $XXX market Marine margin fourth partially with $XX XXXX, Transportation offset total Increased were weather-related income million of segment David, X% the morning, coastal fourth an $XX and $XX and and operating quarter increased the

third of Inland Total income XXXX, the Marine operating quarter while and increased by revenues, X%, X%. increased to Coastal Compared together,

detail. longer, quarter. Average for more and time Now from the Transportation low contracts, revenue. the Marine Inland XX% or revenue, Inland XX% X term contracts affreightment. at of with utilization Long-term looking Inland contributed the from in or XX% approximately barge XX% business year charters of those with of of business contracts The segment approximately was a range XX% in contributed

and compared to that sequentially fourth quarter year-over-year. during Term the Tight to the high in contracts single conditions low mid-single market up were range in on average rates market digits year. renewed prior contributed to reopening up Inland to mid-teens Compared fourth Illinois of to the spot were increasing digits in higher the revenues the and the by to due spot River pricing. third XXXX, locks. term compared increased quarter and of to revenues due XX%, the higher pricing contract quarter of primarily X% Inland the the XXXX,

on we remained the final margins high the the teens, operating of Inland exit in average XX% did at in While quarter. month

and X% up higher shipyard partially as was margins pricing. single-digit business. year-over-year Transportation by offset low moving operating was from The revenues revenues segment. increased of Coastal represented as Now contract by sequentially, the to had shipyards were Coastal offset pricing improved Overall, planned for partially pace. Coastal XX% the decreased X% Coastal business downtime Marine

fourth barge utilization Average the the of was which XXXX. in with coastal was mid-XX% range, in line quarter

up revenue and contract prices in Coastal quarter, sequentially term the were term time up of renewals range of approximately XX%, Average and were contracts year-over-year. in the the mid-single on XX% XX% year-over-year, range charters. During percentage which digits rates the mid-XX% approximately was in the market spot were under

of the number currently reconciliation million barges, the a With to presentation fourth basis, barge we fourth on modest changes Inland fleet a fleet for with our the expect end in quarter, total of we million respect had both earnings a well end Inland in of in website. posted XXXX of the to as of quarter, capacity. by driven our X,XXX our the of as year. XX.X representing additions On capacity, the XX.X businesses, included Inland representing barrels net for At barrels barges, X,XXX call provided tank the a XXXX. projections is have Coastal This and

of Distribution of decreased third X%. operating by saw quarter or Compared were million million to million compared income income or $XXX $XX.X and and $XX.X decline million the review or X%. margin of or XXXX, I'll margins income $X.X with When Revenues to million by of of product XXXX operating increase fourth and by the $XX the increased of performance XX%, Services Services with operating XX%, an XXXX, around and segment. quarter the the the quarter segment the in $XX operating Now Distribution to with million increasing by for fourth revenues revenues related mix. X%

Power for On parts the the up in single markets, revenue activity year-over-year and an contributed business and the revenues improved and fourth also Commercial XX% marine businesses. segment X% Overall, margin our increase and of and mid- repair represented in Industrial with demand in to XX% in approximately a service digits strong had on-highway the equipment, Industrial high quarter. and operating generation to was Commercial year-over-year. sequential

up were delays. on offset year-over-year execution chain Gas and In and solid as the supply sequentially, market, backlog lingering by partially Oil revenues was X% our down X%

we e-frac units our in saw approximately in XX% in Overall, conventional favorable double we trends slowing by and low the and equipment. operating Oil represented quarter fourth margins associated generation our business, continued trends experienced power in digits. remanufacturing While and driven had new of revenue backlog the Gas and segment orders

Now I'll turn the balance sheet. to

XX, total cash of million around we of As December of $X had debt $XX billion. XXXX, with

equipment for We or from million the directed CapEx, ratio achieved on debt balances by of fund the $XX million operating quarter, related hand of to in maintenance and We cash $XXX activities of million we $XX to our cash the expenditure improved which CapEx used our flow of cash XX.X%. flow remainder to and During decreased quarter. was e-frac. debt-to-cap Marine growth and and was $XXX capital to million,

at in $XX.X. repurchased to price to shareholders average return the capital and of million continue quarter an We $XX stock, of

we $XXX December of available XX, As had approximately million. total of liquidity

million from For capital million the posing $XXX to term. some chain see still working operations revenues cash and generate of headwinds expect on in XXXX, supply to We to $XXX EBITDA. near managing flow we constraints higher

maintenance CapEx, as million most of water as Approximately Coastal on and of Having million vessels system existing XXXX to improvements. Up both between shipped, capital, ballast With associated capital the beyond. some year. $XXX expect spending growth our is spending and million capital the to with million Marine unwind treatment equipment, to we in for expect said associated million and $XXX $XX capital that, and and we approximately Inland to this businesses. to facility including range to $XXX some is $XXX working with respect remaining improvements Marine coastal progresses orders

$XXX million flow should cash free approximately the of The net result provide year. for

will this to now discuss I We the capital XXXX. and shareholders remainder acquisition allocation call flow balanced cash opportunities. to investment to value-creating niche to outlook to opportunistically our long-term back a are capital pursue and for continue of approach will and to turn the return use committed David

a Raj. Refinery temporary in remains good activity quarter levels. our some you, businesses, We at headwinds. both Thank had despite high

utilization are and Coastal, rates steadily both barge and strong increasing. Our is in Inland

business, segment conditions in expect weather near-term full year. seasonal Coastal post our and the shipyard to quarter high for outlook some the first activity our remains in in we Marine some strong the typical While headwinds

Distribution Services, to results for continue constraints we In services good, supply discussed, and to financial our we've and products our Overall, XXXX. improved despite in chain businesses is demand receive deliver orders. new we and that expect

and mindful due weakness While all economy this encouraging, of is a to to we challenges slowing rates. related economic additional are global interest

and remain with from flow drive positive these we earnings operations strong expect very uncertainties, going However, forward. cash strong to and even

market dynamics to limited and tight the positive many anticipates In industry steady with outlook Marine, with conditions going Inland construction in combined our in XXXX units customer new barge due maintenance, for demand.

to market grow our throughout full these Overall, are range barge year low With range expected expect mid- the basis. we to single-digit mid-XX% rates a be to the Inland high in utilization to revenues the conditions, on year. in

quarter from year the point the first XXX has the weather to margins XX% gradually revenues be winter be improve improvement a averaging seasonal what being respect a the usual. to around as during the margins, year, quarter full average. With headwind is lowest Normal XXX for in and to will the expected expect started to and XXXX operating with first and to basis we

ballast customer to across in the have the the mid-XX% revenues increase for year considerably the and are year low the first and balanced is With compared of Coastal, expected are full to barge to single demand treatment to market conditions throughout utilization low installations half our the In in shipyards Strong in water and double-digit tightened industry when range, the range. fleet. major supply year, with high concluding expected XXXX. demand

for mid- Services to and from range we weather uncertainty expected OEM commodity the to full high segment, to segment. the single-digit incremental and are see parts margins prices, on the shipyards. a the due the the with operating Coastal products, lowest, Distribution despite year And in expect within demand basis services first and to volatile quarter In be

to the by strong is power activity to stable percent and of offset in most single-digit for our extended and Industrial, high somewhat the XXXX. to demand oilfield lower and deliveries, continue be with anticipate will in of double-digit manufacturing in the to revenue stable We respect Oil provide schedule low times levels activity levels through to Commercial in help of to volatile market. but new term XXXX, products lead drive Gas, near contributing repair backlog In full In marine is expected generation range. year expected growth the

Overall, our and a margins a services high basis we we than lower mix. Transportation, and continue in the rates on remained of and demand mid- position continue the flat slightly to single strong digits, in due new XXXX demand D&S, year-over-year barge segment of In strength to our company expects both products increase. revenues segments. in in to to Marine remain operating year but to utilization receive slightly be conclude, down orders with ended In to strong, To and for manufacturing. customer full

anticipate inflation. we range or XX% Overall, earnings the XXXX. would recession impact businesses of Key that lingering in our putting us the potential recession lower to growth be -- to risks deliver a XX% a end at of

D&S. in stronger-than-expected While markets of achieving and the higher driven for by end chemical and range Oil stronger-than-expected markets would Marine Gas be this

core confident our term, As we businesses our we look and of in the strategy. strength long-term long remain

the are market innings our We continue capitalizing our of businesses early this shareholders. to remains a cycle Operator, solid for multiyear and driving remarks. D&S. up on strong Marine in in concludes demand intend Our value and fundamentals prepared

We are to ready take questions. now

[Operator Instructions] coming Jack of will from first Atkins be Stephens. Our question

maybe just can with how cost So excuse for you I that's get start color in the reading the trying I the of can David, if And in as think, $XX me, little growth to this XX, correct. adding a -- if XXXX? versus how more barges a Distribution kind many to million, I CapEX, like guidance -- The CapEx right, second. new are you guess, us I'm businesses? on I the XX between I that give guess I'd at I guess -- planning the look Marine I'm

Inland? As year, in we you think are about barges XXXX next building for

and that. into Jack, contract. is to some stepped good competitor's They do What a able were boats. the step And to deal building shipyard not needed in a we No. shipyard. get they in happened, They some were with we barges

X that So those and a with then boats and units boats bow thrusting X those basically with barges. barges, it's go

and into So finish stepped It the competitor we was those that them. underway of for contract -- couldn't kind it.

it's it. So happy with we good stick We it. price. And into were a

Do No. we building? want

We price East. make able the a to construction were New doesn't sense get on decent now.

we so And into it. stepped

know, then our So that's It's part the KDS, things is bit. part CapEx. CapEx, as some it's of doing And industry, for that it's about us. growth the maintenance -- for in little real But for CapEx. helping We've it's of we're a real C&I biggest bubble. the you real talked maintenance

So things. still our with CapEx elevated is pretty the of maintenance side

be your down that Inland XXXX. will out just Okay. for know then for walk total sense. I I guess, point, a XXXX? your the to the normal think builds last I relative guess, much to industry in maybe maintenance makes is think on of No, that? be maintenance maybe anticipated industry the maintenance, you And side lot going in Can XXXX schedule of do How us to to you fleet for that relative that as retirements. you in new And then about through

significant. a we'll XX any And is the I the in out. day, have year. -- this as year. on as It It's going this for It's big could know to it's X,XXX of industry, I order. given for Well, north high barges maybe and think XXX be be Yes.

it One, build make But maintaining It positive of put busy number. to I They're So big of and a fleet. think is people reasons. are helps instead their a going that, new. number sense new. for importantly, more cash utility. up to going actually this build doesn't to it's tighten their

it's understand bit. they're you news that And is inflation going And a the it. whole think imagine. get is on. sophisticated. helping picture what's the bubble. They know known as customers might helps quite I So our a this They But not good supply it actually either,

are Labor ships to a used run And X Shipyards steel them number only shifts up, have X high. going be, very Jack, costs costs crude can now up. gone X are they'd shifts. shipyard costs -- of

factoring through that 'XX be in supply check. that's that honest. And keeping all I So think continues into to

builds And industry think to you of part the capacity question, expect attrition just net in the retirements, new on relative that about 'XX? for you as first would

Absolutely.

we've heard, imagine, XX on would I maybe could XXXX. cost and XX there's think only for lot. I bring retirements, you a the a of I but about see I shipyard barges, heck data don't have you what dock something good on imagine it's to going into you

You just soon retire got only it. if life. X left of years its it's

barges is to attrition year. guess see should we XXX So my XX of -- this

So should have net in supply. we this a decline year

of And from our come will next Nolan Ben question Stifel.

good you. numbers. Raj, Thank David,

think like really the forward that is just side. as number have question talk out, whether side, to maybe it's seems and last that of I'm it's the first over side, share? Industrial of curious my to sort on the you and you've Industrial to I'm Industrial you the the just in D&S captured business mix how maybe Or growth? and is. And on you on resulted you just respect more specifically trying your that of cyclical how well It are How business structural if business? changed side sticky about is years. do or grown that So thinking looking with

the Ben. There's it. C&I and repair really on-highway parts for and Yes. power on there's X marine No, Look, there's then to side, generation. the thanks question,

on-highway X, -- first economy, the So repair are trucking pullback right? space. I'd and little say marine saw a going the really see We to the we on-highway with move in

bankrupt last saw year. one You truckers the of go

craft, is pleasure repair, On strong. pullback being in do year, seen little with and but repair commercial election we're marine both a seeing have XXXX. little That's pleasure our pretty commercial an craft, pullback. We a in we marine guidance for Marine

maintaining you expect, our our hear us vessels. would as talk about you As

in story power the And then but real secular generation. -- is growth

now. power pretty runs using business it's Everybody XX/X Every needs think obvious. computing power. I

AI is machine think to that only I demand. and adding learning

our So seeing our in -- side. we're secular generation growth power on

to New Exchange, like, rent Stock As rentals, we well as you backup know, like JPMorgan like power as Costco, Target Walmart, and York retail we out. environments others the provide and the power places well as as

a -- lot seeing some we're equipment. of So it's We there. growth manufacture of that

-- it that's the the as it's secular well more story. growth side, a manufacturing distribution helps of as So and

Okay.

X ago, So to it to high-level take or power were the like of you a business that X just cyclical if to years approach all feel less than sort is function it, it be does of business? in, as a used

still you're side, that whether pumpers they're down service or that's guidance, oilfield our to companies, 'XX. Really, and Overall, that 'XX why cycle. all Gas. revenue the kind sure looking Yes, over seeing all -- see and in it. to absolutely. a is D&S the based you of you strength year, offsetting of is and Oil on is C&I slightly calls look 'XX Gas on in bad. going heard That or seeing as Oil it's be E&P not going to you'll that's revenue down that's C&I Absolutely. D&S. flat for really flattish down, and 'XX. versus for We're pressure I'm to But is making

Okay. good Coastal for to going gears And little looks a it's then year. pretty The my for second in finally bit. question, like shifting a business be

that? is there adding point not a been. remains it, where not just like critical focus you. I I there you mean, was at And of is was need But I of XX. growth about you're think scale? think, focus? in were the a maybe sort at past, a mean, said as barges, point Or know you point which to been I it you it, it hasn't looking Although Or that primary the to, has there sort you've obviously for which I a XX Coastal down at least of at

we're to I be X-year preference would If great grow Inland you Well, That going said, Yes. Coastal be be to our story know Inland would anywhere, it our would here. preference. going a be is an mean, Marine. Marie,

in low saw balance 'XX in the it. in up mid-XX range. XX% our prepared remarks, 'XX, year-over-year We and -- -- term now. to continue in as We're you demand, the in 'XX, going That's probably contracts spot into easily. mid-XX% we are supply saw need and are range We prices up

that The be We've continue rates income digits of year maybe in terms have going been mid-single in to supply the for high balancing get our picture. we're low. margins. business should along because kind of even been single operating 'XX, break-even, the this to And Coastal is digits, really,

As are build built vessels if you we XXX,XXX $XX it expensive, Right until ago you even on if build nobody's got And wouldn't one be it. very million, to $XXX know, would the books. unit, X million million. these for did, barrel to now, they years were XXXX. $XXX it And you get that,

wire was XX took exporting thing But demand was They And may that get to older a crude and some customers about enthusiastic fleet were the ban mean on going mean quality barges now. of just go the much be higher that out Absolutely we've was to XX. to not actual what about. there, we of business. Coastal lifted. for the happened construct barges, low. very got contracts out the comment we -- Does that not. I terms to would we're we're business But other build? not wire want wire was So just customer I our that. barges, go think, speculative we're high, coming from on there lot And fleet, our in a --

one we the at business. So had XX moving crude in coastwise barges point,

a we supply in downturn retired and X. that that business. why And about that's it's in And all excess been has it. pretty the that in Now now, we're protracted excited happened And got we've all across balance that and industry. all been

you -- planning where issues of Okay. And issues or critical are is there's -- enough? economies there's large don't you think any scale mass or anything,

Yes. No.

X largest we're in competitors terms X probably we'll together X. X still so We're There get in to or our space of see size. volume of brings. in on the that the that we're of trying the think market, barrel -- But still a venture, X is one or a in players are I joint what basis.

the we got same mass. you the So on with And that as know, critical deal customers the Inland it's side. we've

every have our with It's and deals our we the or major just scale Vetting because So customers day. group, same Coastal Commercial team whether it's that the team deals Inland.

Got Joe a a to it. congratulations career. And heck Pine. appreciate I lastly, of you. It's just

basically Yes. the for our He'll Thanks into missed. years, He's Joe, from of I institution. Thanks, father for business XX grew what been saying. mean, Ben. today. he he's be is an it nothing it

Hoexter next question from of Ken Our will Bank come of America.

just David, Raj, way, me well, long first, as let the throw it by in so working time with -- just long career, a Joe.

So years. best all the on. of for moves And he luck help thanks the as over

Your have fourth exits at sorry, seeing near you keeps run most right? not Inland levels? talked where if contracts basically of rate just stalled margin and renewed quarter renew about that pricing an thus, XX% cost Has we're given mid-XXs contracts barge segment, reachieve on inflation the XQ acceleration If in now, trying at were kind pricing and to accelerating guess I'm or maybe from in to and the possible levels your accreting Inland hopefully most fourth -- it decelerated quarter. are spot in target basis? XX%, is your

answer But Ken. color, let we'll me get The short mid-XXs. the Yes. give definitely some to yes, is,

okay it's high fourth a month. for was The average weather teens. quarter was question. think December an in I great the the

XX%. that touched we So

worst the always is quarter First weather.

we're anticipating in first teens into dip quarter down the margins the back weather. the because So high of will

the always we The XXX at hard specific. tough probably up one Fourth look to up my year-over-year, month. too view of have in we'll of low be to weather, will points. XXX to XX%. XXX be will entity hurricane, That's I way any water, north get weather By see. high be will points lock margins, Because quarter, it's and margin. Ken, second But to water, that course is basis a basis third just is, to closures, XXX look, the whole

we in same in and the several a out. 'XX. kind improvement -- it take of of to play years that importantly, It's more And runway, magnitude anticipate this should is order

was we and or even prices of flattening, Term Inland, year-over-year. terms XX% Spot that. pricing, X% over Now in didn't in X% to pricing we're rolling XX%. year-over-year up see up

there's and a So healthy between spot actually term. gap

see. X%. above then up You X% saw fourth quarter, to which gap. sequentially, It's we good even want to was spot we pretty term, And spot from to a pricing third

any we So didn't see flattening.

our to where builds. a on We're way we're needs pricing invested trying capital. long up. away offsetting continue we Look, get to back still get to returns new go a from to We're can And justifying inflation. up return

So very it's constructive.

I see the of up year. And think you'll something progression basis XXX margin perhaps to then XXXX. XXX in this similar points

the exit fourth quarter best can't -- far seasonality I rate, you away and as the from as at that the So really, given to is guess, look take the as got rate the at way, run annual repricing. look improvement, you the to

X%. -- We that's heard fair. mean, contracts think the I I term you digits, and X% in our were up high single

through So year. it And progress. that's going this roll will to

now are rates spot for where [indiscernible]? mention you did then And

-- kick shouldn't will my No, I or -- I better me. didn't. attorney

Red to the issues but with chain? going still chain are with well COVID chain keep you side, mentioning you're Sea the would delays. then issues. imagine the and dealing And supply past I now popping what maybe everything we're now supply up supply ONG is rerouting, post on just that I mean

Yes. Ken. No, it's lot gotten a better,

packages items deliveries, saw long our engine of kind when is What's were -- whole probably We example. of -- the pretty time, one-off fourth For in of our holding infer componentry that's its lead and with facility. now out. quarter sure, way having equipment, happening a manufacturing problems our you really up good for worked electronic deliveries were out series

engines If to were of order mid until get we we kind wouldn't them today, 'XX.

world. particular, a So just problem, that's long and boundary on engine -- it's the big engines, constraints in componentry the have in is The the been really times yes, lead times. it's problem. about lead But

power a lot we dealing If particularly for And of D&S would get can that. generation, we'd numbers backup flow engines have with demand deliver compressed, -- we on could better the still seeing C&I, If we're power. better for was we're results. could for that we So quicker, XXXX. in packages quicker, if engine

first the real X can, just want on things, one clarify I David, answer quick, to on if the margins. I

exited So December of seasonality. just mean the how that any And basis change the close to chain that need 'XX, Is kind does change? December for supply points, way to that XX%, December XXX, that then that given do mean if 'XX. could in Does that month, think we exit XXX to should affect it? about to conceptually, just close XX% we

Yes.

right? On a think it mild the depends on saw we'd if be directionally, to that. we December, December, in margins, . absolutely, I mean, close yes, weather I But

That's great.

Yes.

different but of a through. use we side engine getting they're blocks On in we the a working they hard as the have German-based it, working sell chain, engine do. much them stuff And look, different to many We're -- get to same with producing not all not It's and chain. trying seeing the foundries they supply we to as of work to They engines. companies, preorder well. or it's engines. look, of use issues whether best supply thing. company, it's and that can want it for their all There's engine But U.S.-based the company as name me kinds terms they're can

So on working we're it with them.

planning, job control. is we're better as you of trying it Some to out our do would expect. of

Chappell will of question John coming next be Evercore Our from ISI.

us all XXX, lot has for points, close easing of of runway. back you ago of that the years inflation for kind the of years when XXX innings, of kind about kind bit the together, had going a you years question, I now? early couple the margins to about so. we inflation getting I and you, And peaks point this years year mean gets path more ask of then last of When spoken precluding really at would now barring ties been mid-XXs. this next, inland David, longer-term about those think ago. from Is that would to a assume event? a things or cyclical talk mid- basis Can potentially we've couple out a to percent maybe it but at extraordinary revisit talking this both pinching We XX-plus lay to high you an I'm of Inland margin the

get gone could inflation I you reverse seeing to to in when XXs the we're it high inflation, listen kind there, order. getting the those you, about Yes, -- we'll maintenance haven't Steel real. tell we shipyards a I'll would maintenance bit not We're seeing having inflation in the a lot. at We out believe time take hard margin, abated of see. a all. has still is prices deflation. up is do pundits even little But labor. I talked

mariners ecosystem, short, critically the our are entire industry. short, across In

on we where we're our mariners. Fortunately, we crewing. still really school own But have tight train

still seeing of like believe paint steel or seeing rental we're Everybody a seeing hit crew it do us. has inflation, that, all Things rental and moves of So We not inflation. it. lot cars. car, we're labor is and in inflation

that. So we're still offsetting

frustrated I improve our like improvement, us, pace with has of little faster. the it to a think margin been everybody would we certainly

course, chain labor really in to it's issues this and, their our offset and about in fighting of plants. inflation have refineries, steel the But trying experiencing inflation They it. costs. customers supply their same costs, are Look, thing. They're chemical

They our we're understand customers So understand sophisticated fighting it. inflation. definitely

real getting are justify that needed some could increases, but We get to we replacement to prices capacity. price

John, we sorry, fundamentals get and unforeseen, inflation at point anything the the there. high to But barring XXs. we're rambling but to to a it's long going is are some should such mid-XXs get the response, So that

great. That's

together. follow-up, maybe X my here, tag a For tying team things

far So find, XX, had at you're in buybacks after And conceivably. David, to as your competitor to from it's I XX great can a your do that. When as that XXXX. at pick year look years walk second highest position up, you're barges at sheet away least to balance at I able 'XX, the obviously for those

cash a 'XX. free and flow for ton And year guidance per of

a the So is think, ramp event. sell powder the in a pace? you're kind one-off market vis-a-vis keep the the or, flow maybe bit buyback bottom, low, using And the wants up there's cash how do much to to I this bubbling that of where barges But the So free picking David to is M&A Raj. for activity orders I you some to there? brewing want guess up little one so and continue off maybe dry no question at for all now

to And going in on of and got of Yes. We've capacity. too. debt-to-EBITDA let it's our do when available X it's our borrowing stock free to we're your plenty we the our cash like where have I'll a -- flow is it's Raj stock. at aggressive lot been this to a be to our still bit, here year, have going fine. -- point, particularly We X good We and look at, liquidity revolver we've next we a chime be buying to years, going run.

our buy happy we're stock. So to back

We well. some inland think I our we're to one-offs those said, competitor lot year got predicting event. a in price be you, hard acquisitions, we're but that's look you going We borrowing just going to lose always any disciplined we to from did Raj, as add stay want a And very do not discipline. those we up. harder. We stock. anything? to pick tell like we've like bought for That barges last predict. We'll our capacity We'll deal, good a disciplined. would also But big or

Thank Jonathan. Yes, Thanks, David. you.

that's have share we we But opportunities. that repurchase -- rigorous percent saw looking to I M&A at similar barring it's we flow dedicated last what very continue We And difficult of very, at predict trend point, M&A. progressing our David's free us think I you 'XX, towards to of approach We're XX-plus share always repurchase. it. attractive, in can anything to projects look very you think about and any to in towards XXXX. see did year a cash

next Our Lewis from of coming BTIG. Greg question

like ask is guidance, this guess decision mean, I it David, run, the kind year Is year talking too. years to what the pulled the full Raj, terms to of equation? seems in drove multiyear away David, it we a like that of guess I of want and I reintroduce genesis I earnings mean, full ago. operating you're about, I into a back I for kind the did of about, for environment. guess, couple guidance the earnings

you should that about we environment time I the thought of debated whether We No. a a it's be a on to more long kind not there's in notice give I numeric, think we're -- quarterly. not pieces. giving and good we the it specificity little moving mean We it. give lot would a of But number.

outset think we're EPS, of that to going we're or anything this we don't both set it's wanted range just year, the Marine. -- numeric of like D&S I at of kind and given give an quarterly given seeing Just the everything or year, kind to at guidance even for the

Okay. Or we sequentially Any up days, late color I it that around mean kind guess, weather. of that -- they're we And obviously -- that? pennies? yes. then do of of reported kind of then quantify a EPS to we because way was the I kind of I Was changed Any guess and impact? couple more?

up sequentially. Yes. moving a quantify. heard delay there's I days to lot hard -- pieces. so were you It's mean, many It's as

So that has and as from first weather. in the far really in weather hard couple a hundred the has real quarter at It -- see I of was mean because points predict. in 'XX delay as you a first impact. bad usually from tough quarter February in be same is of down it our brings, January We'll anywhere year. But fourth you'll dip last quarter range. -- of margins January could basis see remember, been a brutal the quarter to it's what

it's say. hard really to But

the one in reflected that's respect chemical freeze January, see, impacted quarter, our the and in help lot As here, weather. guidance weather, you but of refineries we of us those out I also the affreightment. there in know, and that. that of time Greg, of we contracts with and in hurt -- a contracts is winter it and say a would affreightment, have And us did still of and things was they're some coming first charters we plants as they the have summer to the little bit a

So it's in that there. all --

multifaceted. But still

look there's that's we why lots could... I with here don't the hope a Hopefully, because that average at but rebase delays, parts hurricanes. from a of whole this year-over-year for everybody to at it I moving kind helps, it to many And hurricane of look wish year, have we parts. Greg. I moving year weather, trying so lock

with of just the be Is see said, range? I yes, could some help maybe I of And quantified of then industry guess, at then I should. Is that closely a Chemicals follow that talk I mentioned I -- kind -- did as bit that a broad why upside don't chemicals chemicals. better could opportunity in you potential terms interesting needs drive it's to a function could the you in I be about think Like numbers. a high mean, function maybe of little the strokes, as the kind of the guidance, and those it end I little of why because -- we just

a saw Chemical in bit. little Look, fourth pulled pull bit. a the back quarter, The Yes. we the industry back volumes little

to seen haven't China back in reemerge We they be. of terms to chemical demand used where

if earnest in help volumes. that started So begin just would it

just waterways the very constructive to As growth you us lot for be on move in know, see of chemicals we and inland that. a it'd

us get end uptick that little margin And we one in the January if help in the movements. kind a that those things could high of now us and are range. closer of back, it on of to seeing came chemical it's But

Advisory. [Operator Greg Webber of Instructions] from Our last Wistakowski Research question will come &

in the customer are kind Inland of sentiment of out satisfaction David, makes Or on ask know out of nobody biting owners what panics? So where you're at on terms book widely order renewal? orders function that sake sense chunks think of things? any to the economics, but retention equation and/or of are it build side that I does the and off either give that a the that for of customer And to any in you wanted the of here seeing the there sense of But you still are of industry do making Is would new. making you fleet now not for -- terms or be sure I bullet rates there, it's right understood there necessarily movements throughout you, ways concern we seeing all? the

is this No, are on Certainly, Yes. think order barges precise, XXXX -- isn't there XX XX only delivery. but nobody we panic. liquid for

very fleet we're including maintenance just most to us, our this earlier and to our but think with I comments, competitors trying busy fitness. maintain this of some referenced in bubble

finances a us. including So mean of lot capital spending in up I lot for more. of for competitors, our a soaking that's lot a we're --

the lot You in up. of heard our couple is last years. maintenance a CapEx

nobody everybody's It's equipment right And just disciplined now. panicking trying build -- any now current to absorbed is to keep and out really go right pretty so running. fleet and trying new and their

tugboats kind percentage And labor Okay. the of are mariner's to sense. guys us increases you chartering expect availability constraints on how availability. cost labor and kind commentary And and many any Great. to in on before in? or But for then year? of chartering this affecting then wage currently what of coming you you That could makes alluded of or and the remind

is happened just of people We're getting seeing trucker qualified range. we're across interesting, of shortages I the charter short a board, XXX Yes. the there and our Look, on there or fleet. labor. XX, -- get was don't XX probably mariners, mariners operate and it, we are We it's in owned tugboats of XX% Board was think too pressure fleet, inland the offshore, a specific in lot labor across whether but charter the what it's fleet and shortage, kind

school. set of skills football And that's barges may blowing, from our people including the be side. own of these individuals, back to and They very river tough maybe -- tankerman of a it's skilled high the tugboat full but moved moving a to find a It it's -- set why marine of highly with have That's qualified moving away on on of skilled now, wind lot a it's field kind hands. deck mariners. a a well, are push the with we

labor a here, side. both just a side very rambling the there's owned and But the Greg, shortage as highly of bit I'm that Yes. we are specific train are pressure, charter about -- tests seeing that. very specific It's on fast to train sorry we We're just So very a while as takes skilled. can, for them it them. trying but these to

Okay. you but of kind into how I additional a function industry-wide, have school the rates method, industry? have a -- getting you just problem? I over think you solved think evil labor to guys it in Yes, that. that Or a know you time? just a How see the of industry do I your do appreciate solves simply do getting think mean it it increase enough to and it you where solvable back place a future? necessary Do it's issue? think wages attract can do you is the is Or

our week a challenge. living lifestyle, always right? weeks it's off, challenge. boat I mean then for I different a on, I mean, -- crewing bit guys of Look, No. X XX a is night XX of a mean, on some a X on is is not off being worked every and home

that's hard lifestyle lot. specific a a home it's to fell, you're from So away because and just family

that there's natural So it balance standpoint. tension life away from kind from a of a

pay That said, do we well.

can. We hired doing high we everything mariners. we we're plays new really in year, our last schools, really, industry deck And well. think I XXX recruit

of I We'll up, as think but the reasons to go itself. point. business, it Greg, have keep that to solves part rates your is running a

us. all the facility we helps for differentiator a inflation us have, a the that lot. Greg, With it's and And training

remarks. for Q&A closing would to conference And this concludes turn our session. the Niemietz now like to back Mr. Kurt I

you, operator, reach questions, to out us. directly. joining and please for you, Any everyone, Thank thank me follow-up

This conference has today's now presentation. concluded. Thank you attending for

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