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TWST: Would you give us a brief historical sketch of the company and a picture
of the things you are doing at the present time?
Mr. Casey: I am the President and CEO of K-Sea Transportation Partners L.P. K-
Sea Transportation is in the business of the distribution of petroleum products
by using tugs and barges, both coastwise and locally in Norfolk and New York. We
started the company about eight years ago when the operating management, along
with a private equity fund, purchased a local operator in New York harbor by the
name of Eklof Marine Corp. We continued to grow the company by acquiring the
northeast fleet of one of our competitors, where we almost doubled the size of
our fleet in late 1999. We also expanded by building new barges, buying
existing units and by purchasing some other smaller companies. A year ago, we
purchased a company on the West Coast, where we expanded our services into the
West Coast and Alaska, which at that time made us the largest coastwise operator
of tank barges in the United States.
To put all this in perspective, when we completed the management buyout in 1999,
we had 1 million barrels of capacity and $10mm of EBITDA. Today we have almost
3.5 million bbls of capacity and using Wall Street Estimates, $60mm of EBITDA.
That's where we stand today. We continue to have a new construction program to
augment organic growth that we are seeing in our markets, and also to renew some
of our older pieces of equipment. TWST: Speaking of renewing older equipment, I believe that you are well ahead on
the process of making everything double-hull. Is that correct?
Mr. Casey: Yes, we are. Currently our fleet is about 70% double-hull and we
project that by the time our current tonnage on order is complete, some time in
mid-2008, our fleet will be over 80% double-hull.
Tickers included in this excerpt: KSP
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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