Kirby (KEX) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Kirby Corporation twenty twenty five First Quarter Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during this session, you need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Please b ...

First quarter 2025 earnings per share of $1.33Inland marine experienced improved market conditions with a sequential increase in spot market prices and operating margins around 20% despite an increase in delay daysKirby repurchased 1,258,031 shares at an average price of $99.16 for $124.7 million year-to-date through April 30, 2025Acquired 14 barges, including four specialty barges, and four high horsepower boats from undisclosed seller for $97.3 millionQuarterly earnings and free cash flow expected to stre ...

Core Viewpoint - A class action lawsuit has been filed against Ready Capital Corporation for failing to disclose significant issues related to non-performing loans in its commercial real estate (CRE) portfolio during the specified class period [1][4]. Financial Performance - Ready Capital reported a fourth quarter 2024 net loss of $1.80 per share and a full year 2024 net loss of $2.52 per share [3]. - The company took decisive actions to stabilize its balance sheet, including a total of $284 million in Current Expected Credit Loss (CECL) and valuation allowances for non-performing loans [3]. - Total leverage increased to 3.8x from 3.3x in the previous quarter [3]. - Following the announcement, Ready Capital's stock price fell by $1.86 per share, approximately 26%, closing at $5.07 on March 3, 2025 [3]. Legal Allegations - The lawsuit alleges that Ready Capital did not disclose that significant non-performing loans were unlikely to be collectible and that the company would fully reserve these loans to stabilize its portfolio [4]. - It is claimed that these issues were not accurately reflected in the company's current expected credit loss or valuation allowances [4].

Core Viewpoint - A class action lawsuit has been filed against Everus Construction Group, Inc. for securities fraud, affecting investors who purchased the company's securities during the specified class period [3][6]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who acquired Everus securities from October 31, 2024, through February 11, 2025, with a deadline of June 3, 2025, for investors to apply as lead plaintiffs [3]. - The complaint alleges that the company failed to disclose that its backlog conversion cycle had become elongated due to larger and more complex projects, leading to delayed revenue recognition [6]. Group 2: Company Background - Everus Construction, previously known as MDU Construction Services Group, Inc., began trading on the NYSE on October 31, 2024, following a spinoff from CEHI, LLC, which is a subsidiary of MDU Resources [4]. Group 3: Financial Performance - On February 11, 2025, Everus reported its fourth quarter and full year 2024 financial results, projecting revenue between $3.0 billion and $3.1 billion and EBITDA between $210 million and $225 million for 2025 [5]. - Following the financial results announcement, Everus shares dropped by $12.43, approximately 18%, from $68.42 to $55.99 per share [5].

Core Viewpoint - A class action lawsuit has been filed against Quantum Computing Inc. for allegedly misleading investors regarding its technology capabilities, relationships with NASA, and financial reporting during the class period from March 30, 2020, to January 15, 2025 [1][6]. Group 1: Allegations and Reports - Iceberg Research published reports alleging that Quantum's claims about its TFLN foundry and chip orders were fraudulent, citing evidence such as communications with a university professor and photos of the supposed foundry location [3][4]. - A second report from Iceberg noted that Quantum's setup appeared more like a laboratory than a mass production foundry, and highlighted insignificant revenue reported from 2021 to the first nine months of 2024 despite claims of being a NASA subcontractor [4]. - Capybara Research's report accused Quantum of overstating its ties to NASA, fabricating revenues through related-party transactions, and claimed that Quantum's products were fake, leading to a significant drop in stock price [5]. Group 2: Class Action Details - The lawsuit alleges that Quantum's executives overstated the capabilities of its quantum computing technologies, the nature of its relationship with NASA, and the progress on its TFLN foundry [6]. - It is claimed that Quantum concealed related-party transactions that inflated its revenues, which, once revealed, could severely impact the company's business and reputation [6].

Core Points - Venture Global, Inc. is facing a federal securities class action due to alleged misleading statements in its registration statement related to its January 2025 IPO [1][5] - The company completed its IPO on January 27, 2025, selling 70 million shares at $24.00 each [3] - TotalEnergies rejected a long-term supply contract with Venture, citing a lack of trust, which has contributed to a decline in Venture's stock price [4] Summary by Sections IPO Details - Venture completed its IPO on January 27, 2025, selling 70 million shares at a price of $24.00 per share [3] Legal Challenges - A class action lawsuit has been filed against Venture, alleging that the company failed to disclose significant issues that misled investors during the IPO process [1][5] - The lawsuit is in response to the company's inability to honor supply contracts, leading to legal challenges from major clients like BP and Shell [4][5] Market Reaction - Following the news of TotalEnergies' rejection of a long-term contract, Venture's stock price fell from $19.68 to $17.48, a decrease of $2.20 per share [4]

Core Viewpoint - Kirby Corporation (KEX) has shown strong stock performance, outperforming the transportation shipping industry and other competitors over the past year [1][3]. Group 1: Stock Performance - KEX shares have improved in double digits over the past year, indicating strong market performance [1]. - The stock's price performance is favorable compared to industry peers like Star Bulk Carriers Corp. (SBLK) and FLEX LNG Ltd. (FLNG) [1]. Group 2: Financial Performance - Revenues for 2024 increased by 11% year over year, while operating income improved by 52% year over year [4]. - For 2025, inland revenues are expected to grow in the mid to high single-digit range, with barge utilization rates projected to be in the low to mid-90% range [4]. - Coastal marine revenues for 2025 are anticipated to increase in the high-single to low-double digit range due to higher contract pricing [5]. - Kirby generated $756.4 million in cash from operating activities in 2024, up from $540.2 million in 2023 and $294.1 million in 2022 [6]. Group 3: Shareholder Initiatives - Kirby has consistently engaged in share buybacks, repurchasing 1.6 million shares for $174.6 million in 2024 and an additional 0.2 million shares for $26.0 million in early 2025 [8][9]. - As of February 17, 2025, Kirby had nearly 2.6 million shares available under existing purchase authorizations, which can enhance earnings per share and signal management's confidence in the stock [9]. Group 4: Valuation - KEX is trading at a discount compared to the industry based on its forward 12-month price-to-sales ratio, with a Value Score of B [10]. Group 5: Segment Performance - The Distribution and Services segment has faced challenges, with revenues decreasing by 1% year over year in 2024 and operating income down by 5% [11]. - The commercial and industrial markets, which contribute significantly to this segment, are experiencing lower business levels due to ongoing economic conditions [12]. Group 6: Cost Pressures - Total costs and expenses rose by 3.9% year over year in 2024, following increases of 6.3% in 2023 and 3.5% in 2022, which puts pressure on margins [13].

Group 1 - Tecsys Inc. has been selected by Kirby Risk to implement its Elite™ WMS for Electrical Distribution, aimed at modernizing fulfillment operations and enhancing warehouse efficiency [1][2] - Kirby Risk operates over 40 locations across the Midwest and Southeast, providing electrical supplies, automation solutions, and technical expertise to various industrial and commercial customers [2][5] - The integration of Tecsys' WMS with Kirby Risk's legacy Eclipse ERP is expected to improve inventory accuracy and maintain high customer service standards [1][3] Group 2 - The Elite™ WMS features specialized functionalities for electrical distribution, including wire-cutting management and automation integration, which will help Kirby Risk streamline operations and enhance service quality [3][4] - Kirby Risk's commitment to providing reliable electrical supply solutions is reinforced by the implementation of Tecsys' WMS, which aims to enhance productivity and reduce costs [3][4] - Tecsys positions its Elite™ WMS as a solution that provides real-time visibility, precision, and scalability, essential for long-term business success in the electrical distribution sector [4][6]

Group 1 - The individual has nearly two decades of experience in the logistics sector and almost a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading on the Philippine stock market, initially investing in blue-chip companies and later diversifying across various industries and market capitalizations [1] - In 2020, the individual entered the US market after gaining experience through a relative's trading account, leading to the decision to open their own account and write for Seeking Alpha to share knowledge [1] Group 2 - The individual holds investments in US banks, hotels, shipping, and logistics companies, using analyses from Seeking Alpha to compare with the Philippine market [1]

Core Points - A class action lawsuit has been filed against Venture Global Inc. for securities fraud related to its January 2025 IPO [3][5] - Investors have until April 18, 2025, to apply to be appointed as lead plaintiff in the lawsuit [3] - Venture's IPO involved the sale of 70 million shares at $24.00 each [3] Company Challenges - TotalEnergies rejected a long-term supply contract with Venture due to a lack of trust, which has negatively impacted Venture's reputation [4] - Venture is facing legal challenges from major clients like BP and Shell due to delays in fulfilling supply contracts [4] - Following the news of TotalEnergies' rejection, Venture's share price dropped from $19.68 to $17.48, a decline of $2.20 per share [4]