UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of report (Date of earliest event reported): April 23,
2008
Kirby
Corporation
(Exact
name of registrant as specified in its charter)
|
Nevada
|
1-7615
|
74-1884980
|
||
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S.
Employer Identification No.)
|
||
|
55
Waugh Drive, Suite 1000
|
77007
|
|||
|
Houston,
Texas
|
(Zip
Code)
|
|||
|
(Address
of principal executive offices)
|
Registrant’s
telephone number, including area code:
(713)
435-1000
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
£ 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))
|
Item
2.02.
|
Results
of Operations and Financial
Condition
|
On April
23, 2008, Kirby Corporation (“Kirby”) issued a press release announcing earnings
for the three months ended March 31, 2008. A copy of the press
release is attached as Exhibit 99.1 to this report.
EBITDA, a
non-GAAP financial measure, is used in the press release. Kirby
defines EBITDA as net earnings before interest expense, taxes on income,
depreciation and amortization. Kirby has historically evaluated its
operating performance using numerous measures, one of which is
EBITDA. 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. A quantitative reconciliation of
EBITDA to GAAP net earnings for the 2008 and 2007 first quarters is included in
the press release.
|
Item
9.01.
|
Financial
Statements and Exhibits
|
|
|
(c)
|
Exhibits:
|
|
|
99.1
|
Press
release dated April 23, 2008
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
|
KIRBY
CORPORATION
|
||
|
(Registrant)
|
||
|
By:
|
/s/
Norman W. Nolen
|
|
|
Norman
W. Nolen
|
||
|
Executive
Vice President, Treasurer
|
||
|
and
Chief Financial Officer
|
||
Dated: April
24, 2008
EXHIBIT
INDEX
Exhibit 99.1 Press release dated April
23, 2008
|
KIRBY
CORPORATION
|
Contact: Steve
Holcomb
|
|
|
713-435-1135
|
FOR IMMEDIATE
RELEASE
KIRBY
CORPORATION ANNOUNCES RECORD
2008
FIRST QUARTER RESULTS
|
·
|
2008 first quarter earnings per
share were $.68, a 48% increase compared with $.46 earned in the 2007
first quarter
|
|
·
|
Demand for both marine
transportation and diesel engine services remains
strong
|
|
·
|
2008 second quarter earnings
per share guidance is $.69 to $.74 versus $.56 earned in the 2007 second
quarter
|
|
·
|
2008 year earnings per share
guidance increased to $2.74 to $2.89 versus $2.29 earned in the 2007
year
|
Houston, Texas (April 23,
2008) – Kirby Corporation (“Kirby”) (NYSE:KEX) today announced record net
earnings for the first quarter ended March 31, 2008 of $36.6 million, or $.68
per share, compared with net earnings of $24.4 million, or $.46 per share, for
the 2007 first quarter. Kirby’s initial published 2008 first quarter
earnings guidance range was $.57 to $.62 per share, which was revised to exceed
$.66 per share on March 17. Consolidated revenues for the 2008 first
quarter were a record $330.6 million, an increase of 21% over the $274.2 million
reported for the 2007 first quarter.
Joe Pyne,
Kirby’s President and Chief Executive Officer commented, “Our financial results
produced the 17th consecutive quarter in which our earnings exceeded the same
quarter of the previous year. The marine transportation fundamentals
remain favorable. We operated additional boats during the
quarter and operated more equipment on time charters which are insulated from
revenue fluctuations caused by weather and navigational delays and temporary
market declines. Our diesel engine services segment continued to
experience strong demand in our medium-speed markets, while our high-speed Gulf
Coast market was, as expected, slower due to seasonal softness in the oil
service market.”
Segment
Results – Marine Transportation
Marine
transportation revenues and operating income for the 2008 first quarter
increased 25% and 44%, respectively, compared with the first quarter of
2007. A major driver with respect to the 25% increase in marine
transportation revenues was the recovery of higher diesel fuel
costs. The marine transportation operating margin was 21.3% for the
2008 first quarter compared with 18.4% for the 2007 first
quarter. The record results reflected continued strong demand, higher
contract and spot market rates, rate escalators on multi-year
contracts and increased efficiencies from the continued improvement in vessel
personnel and towboat availability, partially offset by increased delay days
caused by winter weather conditions compared with the 2007 first
quarter.
1
Segment
Results – Diesel Engine Services
Diesel
engine services revenues and operating income for the 2008 first quarter
increased 6% and 12%, respectively, compared with the 2007 first
quarter. The diesel engine services operating margin was 16.0% for
the 2008 first quarter compared with 15.2% for the 2007 first
quarter. The record results reflected continued strong demand for
service work and parts sales in the medium-speed engine markets, benefiting from
seasonal work for Midwest and Great Lakes customers, and a large power
generation modification project. The high-speed Gulf Coast market, as
anticipated, was slower due to seasonal softness in demand for diesel engine
services to the oil service market. The results also reflected the
accretive acquisition in July 2007 of Saunders Engine and Equipment Company,
Inc., a high-speed diesel engine services provider.
Outlook
Commenting
on the 2008 second quarter, Mr. Pyne said, “We expect our marine transportation
business levels to remain strong and anticipate continued favorable contract and
spot market rate increases. Business levels in our diesel engine
services markets are also anticipated to remain favorable. We do
anticipate a significant increase in delay days in the second quarter due to
high water conditions on the Mississippi River System which will have a negative
impact on our second quarter financial results. For the 2008 second
quarter, our earnings guidance is $.69 to $.74 per share, reflecting a 23% to
32% increase compared with $.56 per share for the 2007 second quarter, and takes
into account anticipated navigational delays due to the high water conditions on
the Mississippi River. For the 2008 year, we are increasing our
guidance range to $2.74 to $2.89 per share, reflecting a 20% to 26% increase
over the 2007 net earnings of $2.29 per share. Our 2008 capital
spending guidance remains at $150 to $160 million, which includes approximately
$80 million for the construction of new tank barges and towboats.”
Conference
Call
A
conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
April 24, 2008, to discuss the 2008 first quarter performance as well as the
outlook for the 2008 second quarter and year. The conference call
number is 888-328-2514 for domestic callers and 706-679-3262 for international
callers. The leader’s name is Steve Holcomb. An audio
playback will be available at 1:00 p.m. central time on Thursday, April 24,
through 5:00 p.m. central time on Friday, May 23, by dialing 800-642-1687 for
domestic and 706-645-9291 for international callers. The conference
ID number is 42922388. The conference call can also be accessed
by visiting Kirby’s website at http://www.kirbycorp.com/
or at http://audioevent.mshow.com/343777/. A
replay will be available on each of those web sites following the conference
call.
2
The
financial and other information to be discussed in the conference call is
available in this press release and in a Form 8-K filed with the Securities and
Exchange Commission. This press release and the Form 8-K include a
non-GAAP financial measure, EBITDA, which Kirby defines as net earnings before
interest expense, taxes on income, depreciation and amortization. A
reconciliation of EBITDA with GAAP net earnings is included in this press
release.
This
earnings press release includes marine transportation performance measures,
consisting of ton miles, revenue per ton mile, towboats operated and delay
days. Comparable performance measures for the 2007 and 2006 years and
quarters are available at Kirby’s web site, http://www.kirbycorp.com/,
under the caption Performance Measurements in the Investor Relations
section.
About
Kirby Corporation
Kirby
Corporation, based in Houston, Texas, operates inland tank barges and towing
vessels, transporting petrochemicals, black oil products, refined petroleum
products and agricultural chemicals throughout the United States’ inland
waterway system. Kirby also owns and operates four ocean-going barge
and tug units transporting dry-bulk commodities in United States coastwise
trade. Through the diesel engine services segment, Kirby provides
after-market service for medium-speed and high-speed diesel engines and
reduction gears used in marine, power generation and railroad
applications.
Statements
contained in this press release with respect to the future are forward-looking
statements. These statements reflect management’s reasonable judgment
with respect to future events. Forward-looking statements involve
risks and uncertainties. Actual results could differ materially from
those anticipated as a result of various factors, including cyclical or other
downturns in demand, significant pricing competition, unanticipated additions to
industry capacity, changes in the Jones Act or in U.S. maritime policy and
practice, fuel costs, interest rates, weather conditions, and timing, magnitude
and number of acquisitions made by Kirby. Forward-looking statements
are based on currently available information and Kirby assumes no obligation to
update any such statements. A list of additional risk factors can be
found in Kirby’s annual report on Form 10-K for the year ended December 31, 2007
filed with the Securities and Exchange Commission.
3
A summary
of the results for the first quarter follows:
|
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands except per
share amounts)
|
||||||||
|
Revenues:
|
||||||||
|
Marine
transportation
|
$ | 261,228 | $ | 209,065 | ||||
|
Diesel
engine services
|
69,342 | 65,146 | ||||||
| 330,570 | 274,211 | |||||||
|
Costs
and expenses:
|
||||||||
|
Costs
of sales and operating expenses
|
208,346 | 175,599 | ||||||
|
Selling,
general and administrative
|
32,872 | 30,506 | ||||||
|
Taxes,
other than on income
|
3,533 | 3,134 | ||||||
|
Depreciation
and amortization
|
22,327 | 19,587 | ||||||
|
Loss
on disposition of assets
|
58 | 499 | ||||||
| 267,136 | 229,325 | |||||||
|
Operating
income
|
63,434 | 44,886 | ||||||
|
Other
expense
|
(257 | ) | (150 | ) | ||||
|
Interest
expense
|
(3,782 | ) | (5,154 | ) | ||||
|
Earnings
before taxes on income
|
59,395 | 39,582 | ||||||
|
Provision
for taxes on income
|
(22,748 | ) | (15,160 | ) | ||||
|
Net
earnings
|
$ | 36,647 | $ | 24,422 | ||||
|
Net
earnings per share of common stock:
|
||||||||
|
Basic
|
$ | 0.69 | $ | 0.46 | ||||
|
Diluted
|
$ | 0.68 | $ | 0.46 | ||||
|
Common
stock outstanding (in thousands):
|
||||||||
|
Basic
|
53,222 | 52,713 | ||||||
|
Diluted
|
54,051 | 53,591 | ||||||
|
CONDENSED CONSOLIDATED
FINANCIAL INFORMATION
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands)
|
||||||||
|
EBITDA:
(1)
|
||||||||
|
Net
earnings
|
$ | 36,647 | $ | 24,422 | ||||
|
Interest
expense
|
3,782 | 5,154 | ||||||
|
Provision
for taxes on income
|
22,748 | 15,160 | ||||||
|
Depreciation
and amortization
|
22,327 | 19,587 | ||||||
| $ | 85,504 | $ | 64,323 | |||||
|
Capital
expenditures
|
$ | 48,753 | $ | 53,649 | ||||
|
Acquisitions
of businesses and marine equipment
|
$ | 1,800 | $ | 47,317 | ||||
|
March 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands)
|
||||||||
|
Long-term
debt, including current portion
|
$ | 283,230 | $ | 360,574 | ||||
|
Stockholders’
equity
|
$ | 807,435 | $ | 661,045 | ||||
|
Debt
to capitalization ratio
|
26.0 | % | 35.3 | % | ||||
4
|
MARINE TRANSPORTATION
STATEMENTS OF EARNINGS
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands)
|
||||||||
|
Marine
transportation revenues
|
$ | 261,228 | $ | 209,065 | ||||
|
Costs
and expenses:
|
||||||||
|
Costs
of sales and operating expenses
|
159,649 | 128,830 | ||||||
|
Selling,
general and administrative
|
22,308 | 20,480 | ||||||
|
Taxes,
other than on income
|
3,235 | 2,878 | ||||||
|
Depreciation
and amortization
|
20,520 | 18,316 | ||||||
| 205,712 | 170,504 | |||||||
|
Operating
income
|
$ | 55,516 | $ | 38,561 | ||||
|
Operating
margins
|
21.3 | % | 18.4 | % | ||||
|
DIESEL ENGINE SERVICES
STATEMENTS OF EARNINGS
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands)
|
||||||||
|
Diesel
engine services revenues
|
$ | 69,342 | $ | 65,146 | ||||
|
Costs
and expenses:
|
||||||||
|
Costs
of sales and operating expenses
|
48,697 | 46,769 | ||||||
|
Selling,
general and administrative
|
7,832 | 7,310 | ||||||
|
Taxes,
other than on income
|
274 | 244 | ||||||
|
Depreciation
and amortization
|
1,434 | 926 | ||||||
| 58,237 | 55,249 | |||||||
|
Operating
income
|
$ | 11,105 | $ | 9,897 | ||||
|
Operating
margins
|
16.0 | % | 15.2 | % | ||||
|
OTHER COSTS AND
EXPENSES
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
(unaudited,
$ in thousands)
|
||||||||
|
General
corporate expenses
|
$ | 3,129 | $ | 3,073 | ||||
|
Loss
on disposition of assets
|
$ | 58 | $ | 499 | ||||
5
|
MARINE TRANSPORTATION
PERFORMANCE MEASUREMENTS
|
||||||||
|
First Quarter
|
||||||||
|
2008
|
2007
|
|||||||
|
Ton
Miles (in millions) (2)
|
3,806 | 3,777 | ||||||
|
Revenue/Ton
Mile (cents/tm) (3)
|
6.6 | 5.3 | ||||||
|
Towboats
operated (average) (4)
|
260 | 248 | ||||||
|
Delay
Days (5)
|
2,998 | 2,600 | ||||||
|
Average
cost per gallon of fuel consumed
|
$ | 2.71 | $ | 1.71 | ||||
|
Tank
barges:
|
||||||||
|
Active
|
912 | 913 | ||||||
|
Inactive
|
63 | 52 | ||||||
|
Barrel
Capacities (in millions):
|
||||||||
|
Active
|
17.3 | 17.3 | ||||||
|
Inactive
|
1.2 | .9 | ||||||
|
(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 before interest
expense, taxes on income, depreciation and amortization. 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.
|
|
(2)
|
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.
|
|
(3)
|
Inland
marine transportation revenues divided by ton
miles. Example: First quarter 2008 inland marine
revenues of $251,696,000 divided by 3,806,000,000 marine transportation
ton miles = 6.6 cents.
|
(4) Towboats
operated are the average number of owned and chartered towboats operated during
the period.
|
(5)
|
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.
|
# #
#
6