|
|
|
(State or other Jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits
|
(d) |
Exhibits:
|
Exhibit
Number
|
Description of Exhibit
|
|
Press release dated October 29, 2020.
|
||
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
KIRBY CORPORATION
|
||
By:
|
/s/ William G. Harvey
|
|
William G. Harvey
|
||
Executive Vice President
and Chief Financial Officer
|
||
Date: October 29, 2020
|
KIRBY CORPORATION
|
Contact: Eric Holcomb
|
713-435-1545
|
•
|
Third quarter 2020 earnings of $0.46 per share
|
•
|
Distribution and services at breakeven as a result of significant cost reductions and improved activity
|
•
|
Marine results impacted by reduced volumes and hurricanes
|
•
|
Strong net cash flow provided by operating activities of $118 million and free cash flow of $81 million in the third quarter
|
•
|
Expect FY2020 free cash flow of $300 to $350 million
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited, $ in thousands, except per share amounts)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Marine transportation
|
$
|
320,602
|
$
|
412,665
|
$
|
1,104,846
|
$
|
1,185,072
|
||||||||
Distribution and services
|
175,965
|
254,144
|
576,806
|
997,400
|
||||||||||||
Total revenues
|
496,567
|
666,809
|
1,681,652
|
2,182,472
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Costs of sales and operating expenses
|
340,764
|
458,514
|
1,167,871
|
1,558,664
|
||||||||||||
Selling, general and administrative
|
61,720
|
64,656
|
199,412
|
206,602
|
||||||||||||
Taxes, other than on income
|
9,077
|
10,909
|
33,548
|
31,486
|
||||||||||||
Depreciation and amortization
|
54,779
|
54,455
|
165,067
|
164,771
|
||||||||||||
Impairments and other charges
|
—
|
—
|
561,274
|
—
|
||||||||||||
(Gain) loss on disposition of assets
|
316
|
374
|
13
|
(4,901
|
)
|
|||||||||||
Total costs and expenses
|
466,656
|
588,908
|
2,127,185
|
1,956,622
|
||||||||||||
Operating income (loss)
|
29,911
|
77,901
|
(445,533
|
)
|
225,850
|
|||||||||||
Other income
|
1,172
|
864
|
6,185
|
2,677
|
||||||||||||
Interest expense
|
(11,809
|
)
|
(14,310
|
)
|
(37,316
|
)
|
(43,026
|
)
|
||||||||
Earnings (loss) before taxes on income
|
19,274
|
64,455
|
(476,664
|
)
|
185,501
|
|||||||||||
(Provision) benefit for taxes on income
|
8,419
|
(16,305
|
)
|
182,657
|
(45,454
|
)
|
||||||||||
Net earnings (loss)
|
27,693
|
48,150
|
(294,007
|
)
|
140,047
|
|||||||||||
Less: Net earnings attributable to noncontrolling interests
|
(204
|
)
|
(163
|
)
|
(743
|
)
|
(477
|
)
|
||||||||
Net earnings (loss) attributable to Kirby
|
$
|
27,489
|
$
|
47,987
|
$
|
(294,750
|
)
|
$
|
139,570
|
|||||||
Net earnings (loss) per share attributable to Kirby common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.46
|
$
|
0.80
|
$
|
(4.92
|
)
|
$
|
2.33
|
|||||||
Diluted
|
$
|
0.46
|
$
|
0.80
|
$
|
(4.92
|
)
|
$
|
2.32
|
|||||||
Common stock outstanding (in thousands):
|
||||||||||||||||
Basic
|
59,915
|
59,749
|
59,903
|
59,733
|
||||||||||||
Diluted
|
59,931
|
59,906
|
59,903
|
59,879
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited, $ in thousands)
|
||||||||||||||||
EBITDA: (1)
|
||||||||||||||||
Net earnings (loss) attributable to Kirby
|
$
|
27,489
|
$
|
47,987
|
$
|
(294,750
|
)
|
$
|
139,570
|
|||||||
Interest expense
|
11,809
|
14,310
|
37,316
|
43,026
|
||||||||||||
Provision (benefit) for taxes on income
|
(8,419
|
)
|
16,305
|
(182,657
|
)
|
45,454
|
||||||||||
Impairment of long-lived assets
|
—
|
—
|
165,304
|
—
|
||||||||||||
Impairment of goodwill
|
—
|
—
|
387,970
|
—
|
||||||||||||
Depreciation and amortization
|
54,779
|
54,455
|
165,067
|
164,771
|
||||||||||||
$
|
85,658
|
$
|
133,057
|
$
|
278,250
|
$
|
392,821
|
|||||||||
Capital expenditures
|
$
|
36,541
|
$
|
56,800
|
$
|
129,371
|
$
|
184,068
|
||||||||
Acquisitions of businesses and marine equipment
|
$
|
6,525
|
$
|
4,700
|
$
|
348,772
|
$
|
257,540
|
September 30,
2020
|
December 31,
2019
|
|||||||
(unaudited, $ in thousands)
|
||||||||
Cash and cash equivalents
|
$
|
119,586
|
$
|
24,737
|
||||
Long-term debt, including current portion
|
$
|
1,578,344
|
$
|
1,369,767
|
||||
Total equity
|
$
|
3,078,367
|
$
|
3,371,592
|
||||
Debt to capitalization ratio
|
33.9
|
%
|
28.9
|
%
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited, $ in thousands)
|
||||||||||||||||
Marine transportation revenues
|
$
|
320,602
|
$
|
412,665
|
$
|
1,104,846
|
$
|
1,185,072
|
||||||||
Costs and expenses:
|
||||||||||||||||
Costs of sales and operating expenses
|
207,038
|
257,869
|
717,923
|
771,596
|
||||||||||||
Selling, general and administrative
|
26,554
|
28,424
|
85,294
|
90,896
|
||||||||||||
Taxes, other than on income
|
7,307
|
9,230
|
27,852
|
26,355
|
||||||||||||
Depreciation and amortization
|
47,312
|
44,445
|
139,295
|
134,861
|
||||||||||||
Total costs and expenses
|
288,211
|
339,968
|
970,364
|
1,023,708
|
||||||||||||
Operating income
|
$
|
32,391
|
$
|
72,697
|
$
|
134,482
|
$
|
161,364
|
||||||||
Operating margin
|
10.1
|
%
|
17.6
|
%
|
12.2
|
%
|
13.6
|
%
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited, $ in thousands)
|
||||||||||||||||
Distribution and services revenues
|
$
|
175,965
|
$
|
254,144
|
$
|
576,806
|
$
|
997,400
|
||||||||
Costs and expenses:
|
||||||||||||||||
Costs of sales and operating expenses
|
133,726
|
200,645
|
449,948
|
787,068
|
||||||||||||
Selling, general and administrative
|
33,098
|
33,608
|
108,295
|
108,194
|
||||||||||||
Taxes, other than on income
|
1,754
|
1,674
|
5,636
|
5,102
|
||||||||||||
Depreciation and amortization
|
6,283
|
9,085
|
22,252
|
27,167
|
||||||||||||
Total costs and expenses
|
174,861
|
245,012
|
586,131
|
927,531
|
||||||||||||
Operating income (loss)
|
$
|
1,104
|
$
|
9,132
|
$
|
(9,325
|
)
|
$
|
69,869
|
|||||||
Operating margin
|
0.6
|
%
|
3.6
|
%
|
(1.6
|
)%
|
7.0
|
%
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
(unaudited, $ in thousands)
|
||||||||||||||||
General corporate expenses
|
$
|
3,268
|
$
|
3,554
|
$
|
9,403
|
$
|
10,284
|
||||||||
Impairment of long-lived assets
|
$
|
—
|
$
|
—
|
$
|
165,304
|
$
|
—
|
||||||||
Impairment of goodwill
|
$
|
—
|
$
|
—
|
$
|
387,970
|
$
|
—
|
||||||||
Inventory write-downs
|
$
|
—
|
$
|
—
|
$
|
8,000
|
$
|
—
|
||||||||
(Gain) loss on disposition of assets
|
$
|
316
|
$
|
374
|
$
|
13
|
$
|
(4,901
|
)
|
First Nine Months 2020
|
||||||||||||
Pre-
Tax
|
After-
Tax
|
Per
Share
|
||||||||||
(unaudited, $ in millions except per
share amounts)
|
||||||||||||
GAAP loss
|
$
|
(476.7
|
)
|
$
|
(294.8
|
)
|
$
|
(4.92
|
)
|
|||
Impairments and other charges
|
561.3
|
433.3
|
7.24
|
|||||||||
Income tax benefit on 2018 and 2019 net operating loss carrybacks
|
—
|
(50.8
|
) |
(0.85
|
)
|
|||||||
Earnings, excluding one-time items(2)
|
$
|
84.6
|
$
|
87.7
|
$
|
1.47
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019(3)
|
2020
|
2019(3)
|
|||||||||||||
(unaudited, $ in millions)
|
||||||||||||||||
Net cash provided by operating activities
|
$
|
117.7
|
$
|
199.4
|
$
|
359.8
|
$
|
387.6
|
||||||||
Less: Capital expenditures
|
(36.6
|
)
|
(56.8
|
)
|
(129.4
|
)
|
(184.1
|
)
|
||||||||
Free cash flow(2)
|
$
|
81.1
|
$
|
142.6
|
$
|
230.4
|
$
|
203.5
|
FY 2020 Projection
|
FY
2019(3)
|
|||||||||||
Low
|
High
|
Actual
|
||||||||||
(unaudited, $ in millions)
|
||||||||||||
Net cash provided by operating activities
|
$
|
450.0
|
$
|
500.0
|
$
|
511.8
|
||||||
Less: Capital expenditures
|
(150.0
|
)
|
(150.0
|
)
|
(248.2
|
)
|
||||||
Free cash flow(2)
|
$
|
300.0
|
$
|
350.0
|
$
|
263.6
|
Third Quarter
|
Nine Months
|
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Inland Performance Measurements:
|
||||||||||||||||
Ton Miles (in millions) (4)
|
2,794
|
3,958
|
10,101
|
10,811
|
||||||||||||
Revenue/Ton Mile (cents/tm) (5)
|
8.9
|
8.0
|
8.6
|
8.4
|
||||||||||||
Towboats operated (average) (6)
|
265
|
304
|
300
|
299
|
||||||||||||
Delay Days (7)
|
1,335
|
2,284
|
8,640
|
10,228
|
||||||||||||
Average cost per gallon of fuel consumed
|
$
|
1.27
|
$
|
2.00
|
$
|
1.47
|
$
|
2.06
|
||||||||
Barges (active):
|
||||||||||||||||
Inland tank barges
|
1,084
|
1,065
|
||||||||||||||
Coastal tank barges
|
47
|
49
|
||||||||||||||
Offshore dry-cargo barges
|
4
|
4
|
||||||||||||||
Barrel capacities (in millions):
|
||||||||||||||||
Inland tank barges
|
24.5
|
23.7
|
||||||||||||||
Coastal tank barges
|
4.3
|
4.7
|
(1) |
Kirby has historically evaluated its operating performance using numerous measures, one of which is EBITDA, a non-GAAP financial measure. Kirby defines EBITDA as net earnings attributable to Kirby
before interest expense, taxes on income, depreciation and amortization, impairment of long-lived assets, and impairment of goodwill. EBITDA is presented because of its wide acceptance as a financial indicator. EBITDA is one of the
performance measures used in Kirby’s incentive bonus plan. EBITDA is also used by rating agencies in determining Kirby’s credit rating and by analysts publishing research reports on Kirby, as well as by investors and investment bankers
generally in valuing companies. EBITDA is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to, but should only be considered in conjunction with, Kirby’s GAAP financial
information.
|
(3) |
See Kirby’s 2019 10-K and 2019 third quarter 10-Q for amounts provided by (used in) investing and financing activities.
|
(4) |
Ton miles indicate fleet productivity by measuring the distance (in miles) a loaded tank barge is moved. Example: A typical 30,000 barrel tank barge loaded with 3,300 tons of liquid cargo is moved
100 miles, thus generating 330,000 ton miles.
|
(5) |
Inland marine transportation revenues divided by ton miles. Example: Third quarter 2020 inland marine transportation revenues of $247,647,000 divided by 2,794,000,000 inland marine transportation
ton miles = 8.9 cents.
|
(6) |
Towboats operated are the average number of owned and chartered towboats operated during the period.
|
(7) |
Delay days measures the lost time incurred by a tow (towboat and one or more tank barges) during transit. The measure includes transit delays caused by weather, lock congestion and other
navigational factors.
|