Financial Data and Key Metrics Changes - The company reported first quarter earnings per share of $1.33, an increase from $1.19 in the same period of 2024, reflecting improved market fundamentals in marine transportation and strong demand for power generation [6][11] - Overall, the Marine Transportation segment revenues were $476 million with an operating income of $87 million, resulting in an operating margin of 18.2% [13][20] - The company expects to generate cash flow from operations of $620 million to $720 million for 2025, with a strong balance sheet and significant free cash flow anticipated despite high levels of capital expenditures [26][33] Business Line Data and Key Metrics Changes - Inland marine transportation revenues increased by 2% year-over-year, primarily due to higher utilization and pricing, despite a 50% increase in delay days compared to the previous quarter [15][19] - Coastal marine revenues decreased by 6% year-over-year due to shipyard maintenance, but barge utilization remained strong in the mid to high 90% range [10][17] - Distribution and Services segment revenues decreased by 7% year-over-year, with power generation revenues down 23% due to supply delays, while commercial and industrial revenues grew by 12% year-over-year [20][22] Market Data and Key Metrics Changes - Barge utilization rates in inland marine were in the low to mid 90% range, while coastal marine utilization was in the mid to high 90% range [9][18] - Spot prices for inland marine increased in the low single digits sequentially and in the high single digits year-over-year, while term contract prices renewed with mid single-digit increases [9][15] - The company noted strong demand for power generation products, particularly from data centers, contributing to a healthy backlog despite supply delays [20][32] Company Strategy and Development Direction - The company aims to capitalize on strong market fundamentals and drive shareholder value creation through strategic acquisitions and stock repurchases [27][33] - Management indicated a focus on maintaining a balanced capital allocation approach, with capital expenditures expected to range between $280 million and $320 million for the year [26][27] - The company is optimistic about the marine market outlook, expecting revenues to grow in the mid to high single-digit range for inland marine and high single to low double-digit range for coastal marine [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of core businesses and favorable market conditions, despite potential macroeconomic uncertainties [28][33] - The company anticipates continued strength in market fundamentals for both segments, with inland revenues expected to grow and operating margins gradually improving [30][31] - Management highlighted the importance of managing working capital and supply constraints, while also noting the potential for revenue acceleration as backlogs convert into sales [41][42] Other Important Information - The company reported a net cash flow from operating activities of $36.5 million, impacted by a working capital build of approximately $122 million [24] - The company used $101.5 million for stock repurchases at an average price just over $101, with continued repurchases in the second quarter [25][26] - The inland fleet is expected to end 2025 with a total of 1,117 barges, representing 24.8 million barrels of capacity [19] Q&A Session Summary Question: What is the outlook for acquisitions given the current market environment? - Management indicated that the environment is more constructive for acquisition opportunities, with a focus on consolidating marine acquisitions as a priority [39][40] Question: How are cost controls impacting margins in the Distribution and Services segment? - Management noted that strong lean processes have been implemented, which should continue to improve margins, although there are mix issues affecting overall profitability [42][43] Question: What is the current state of inland barge utilization and pricing? - Management confirmed that inland barge utilization exited the first quarter in the mid-90s, with spot pricing up sequentially and term contracts showing increases [52][54] Question: How do tariffs and trade flows impact the business? - Management explained that while steel prices have increased due to tariffs, the overall impact is modestly positive, with potential benefits from onshoring and domestic manufacturing [70][72] Question: What is the outlook for coastal margins as shipyard days decline? - Management expects coastal margins to improve as shipyard maintenance concludes, with a significant increase in revenue anticipated in subsequent quarters [88][89]

Financial Data and Key Metrics Changes - The company reported first quarter earnings per share of $1.33, an increase from $1.19 in the same period of 2024, reflecting improved market fundamentals in marine transportation and strong demand for power generation [5][6] - Overall, inland marine transportation faced a 50% increase in delay days compared to the previous quarter, impacting financial performance [6][12] - Despite challenges, inland operating margins improved year over year, driven by higher pricing and cost management, maintaining around 20% margins [7][14] Business Line Data and Key Metrics Changes - Marine Transportation segment revenues were $476 million with an operating income of $87 million, resulting in an operating margin of 18.2% [12] - Inland marine revenues increased 2% year over year, primarily due to higher utilization and pricing, while coastal revenues decreased 6% year over year due to shipyard maintenance [14][15] - Distribution and Services segment revenues were $310 million, down 7% year over year, while operating income increased by approximately 3% [18] Market Data and Key Metrics Changes - Barge utilization rates in inland marine were in the low to mid 90% range, while coastal marine utilization was in the mid to high 90% range [7][8] - Spot prices for inland marine increased in the low single digits sequentially and in the high single digits year over year, with term contract prices also seeing mid single-digit increases [7][14] - In power generation, revenues decreased 23% year over year due to supply delays, but the backlog of projects remained healthy [18][19] Company Strategy and Development Direction - The company aims to capitalize on strong market fundamentals and drive shareholder value creation through strategic acquisitions and stock repurchases [31][32] - The outlook for the marine market remains strong, with expectations for inland revenues to grow in the mid to high single-digit range for the full year [27][28] - The company is focused on maintaining a balanced capital allocation approach, with capital expenditures expected to range between $280 million and $320 million for the year [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of core businesses and favorable market conditions, despite potential macroeconomic uncertainties [26][31] - The company anticipates continued strong demand for power generation products and services, offsetting weaknesses in oil and gas markets [29][30] - Management noted that while there are supply constraints, they expect to unwind working capital as orders shift in 2025 and beyond [23][30] Other Important Information - The company had total available liquidity of approximately $334 million as of March 31, with a net debt to EBITDA ratio just under 1.5 times [21][23] - The company repurchased $101.5 million in stock at an average price just over $101 during the quarter [22] Q&A Session Summary Question: Can you discuss the acquisition environment and opportunities? - Management indicated that the environment is more constructive for acquisition opportunities compared to the past few years, with a focus on consolidating marine acquisitions [36][38] Question: What is the outlook for margins in the Distribution and Services segment? - Management noted that margin improvements are expected due to strong lean processes, but there are mix issues affecting overall margins [39][40] Question: How are barge utilization and pricing trending? - Management confirmed that barge utilization exited the first quarter in the mid-90s, with spot pricing up sequentially and term contracts showing increases [49][51] Question: What are the impacts of tariffs and trade flows? - Management discussed potential short-term impacts from tariffs on engine pricing but noted that steel price increases could positively affect new barge costs [68][70] Question: What is the expectation for coastal margins moving forward? - Management expects coastal margins to improve as shipyard maintenance concludes, with a positive outlook for revenue generation [86][88]