SEC Filing | Kirby Corporation

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

 Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2021

 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 1-7615

KIRBY CORPORATION

(Exact name of registrant as specified in its charter)

Nevada

74-1884980

(I.R.S. Employer Identification No.)

(State or other jurisdiction of incorporation or organization)

55 Waugh Drive, Suite 1000

Houston, TX

77007

(Address of principal executive offices)

(Zip Code)

713-435-1000

(Registrant’s telephone number, including area code)

No Change

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	KEX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer		Accelerated filer	
Non-accelerated filer		Smaller reporting company	
		Emerging growth company	

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

As of August 4, 2021, 60,109,000 shares of the Registrant’s $0.10 par value per share common stock were outstanding.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED BALANCE SHEETS

(Unaudited)


	June 30, 2021			December 31, 2020
	($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	53,052		$	80,338
Accounts receivable:
Trade – less allowance for doubtful accounts		352,372			315,283
Other		165,478			284,899
Inventories – net		325,545			309,675
Prepaid expenses and other current assets		66,696			57,776
Total current assets		963,143			1,047,971

Property and equipment		5,593,651			5,615,400
Accumulated depreciation		(1,730,845	)		(1,698,330	)
Property and equipment – net		3,862,806			3,917,070

Operating lease right-of-use assets		164,911			174,317
Goodwill		657,800			657,800
Other intangibles, net		64,397			68,979
Other assets		54,758			58,037
Total assets	$	5,767,815		$	5,924,174

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank notes payable	$	1,417		$	40
Income taxes payable		497			474
Accounts payable		188,724			162,507
Accrued liabilities		231,603			224,855
Current portion of operating lease liabilities		31,963			32,750
Deferred revenues		44,018			45,406
Total current liabilities		498,222			466,032

Long-term debt, net – less current portion		1,274,262			1,468,546
Deferred income taxes		612,682			606,844
Operating lease liabilities – less current portion		153,457			163,496
Other long-term liabilities		123,863			131,703
Total long-term liabilities		2,164,264			2,370,589

Contingencies and commitments		—			—

Equity:
Kirby stockholders’ equity:
Common stock, $0.10 par value per share. Authorized 120,000,000 shares, issued 65,472,000 shares		6,547			6,547
Additional paid-in capital		848,081			844,979
Accumulated other comprehensive income – net		(57,683	)		(61,452	)
Retained earnings		2,600,208			2,593,393
Treasury stock – at cost, 5,366,000 shares at June 30, 2021 and 5,434,000 at December 31, 2020		(295,463	)		(299,161	)
Total Kirby stockholders’ equity		3,101,690			3,084,306
Noncontrolling interests		3,639			3,247
Total equity		3,105,329			3,087,553
Total liabilities and equity	$	5,767,815		$	5,924,174

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF EARNINGS

(Unaudited)


	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
	($ in thousands, except per share amounts)
Revenues:
Marine transportation	$	332,887		$	380,987		$	633,838		$	784,244
Distribution and services		226,737			160,172			422,636			400,841
Total revenues		559,624			541,159			1,056,474			1,185,085

Costs and expenses:
Costs of sales and operating expenses		409,479			373,539			772,519			827,107
Selling, general and administrative		62,740			65,612			132,369			137,692
Taxes, other than on income		10,364			13,065			18,624			24,471
Depreciation and amortization		55,132			54,502			110,022			110,288
Impairments and other charges		—			—			—			561,274
(Gain) loss on disposition of assets		(2,119	)		189			(4,252	)		(303	)
Total costs and expenses		535,596			506,907			1,029,282			1,660,529

Operating income (loss)		24,028			34,252			27,192			(475,444	)
Other income		2,523			2,290			6,314			5,013
Interest expense		(10,706	)		(12,708	)		(21,672	)		(25,507	)

Earnings (loss) before taxes on income		15,845			23,834			11,834			(495,938	)
(Provision) benefit for taxes on income		(5,493	)		1,429			(4,602	)		174,238

Net earnings (loss)		10,352			25,263			7,232			(321,700	)
Less: Net earnings attributable to noncontrolling interests		(162	)		(261	)		(417	)		(539	)

Net earnings (loss) attributable to Kirby	$	10,190		$	25,002		$	6,815		$	(322,239	)

Net earnings (loss) per share attributable to Kirby common stockholders:
Basic	$	0.17		$	0.42		$	0.11		$	(5.38	)
Diluted	$	0.17		$	0.42		$	0.11		$	(5.38	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
	($ in thousands)
Net earnings (loss)	$	10,352		$	25,263		$	7,232		$	(321,700	)

Other comprehensive income (loss), net of taxes:
Pension and postretirement benefits		3,607			(2,477	)		4,352			(2,395	)
Foreign currency translation adjustments		(86	)		351			(583	)		(923	)
Total other comprehensive income (loss), net of taxes		3,521			(2,126	)		3,769			(3,318	)

Total comprehensive income (loss), net of taxes		13,873			23,137			11,001			(325,018	)
Net earnings attributable to noncontrolling interests		(162	)		(261	)		(417	)		(539	)

Comprehensive income (loss) attributable to Kirby	$	13,711		$	22,876		$	10,584		$	(325,557	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)


	Six Months Ended June 30,
	2021			2020
	($ in thousands)
Cash flows from operating activities:
Net earnings (loss)	$	7,232		$	(321,700	)
Adjustments to reconcile net earnings (loss) to net cash provided by operations:
Depreciation and amortization		110,022			110,288
Provision (benefit) for deferred income taxes		4,380			(18,588	)
Impairments and other charges		—			561,274
Amortization of unearned share-based compensation		9,148			8,652
Amortization of major maintenance costs		17,082			14,473
Other		(4,309	)		3,513
Increase (decrease) in cash flows resulting from changes in operating assets and liabilities, net		54,263			(115,768	)
Net cash provided by operating activities		197,818			242,144

Cash flows from investing activities:
Capital expenditures		(38,369	)		(92,830	)
Acquisitions of businesses and marine equipment		(7,470	)		(342,247	)
Proceeds from disposition of assets		16,731			4,918
Net cash used in investing activities		(29,108	)		(430,159	)

Cash flows from financing activities:
Borrowings (payments) on bank credit facilities, net		(193,623	)		424,991
Payments on long-term debt		—			(150,000	)
Proceeds from exercise of stock options		505			353
Payments related to tax withholding for share-based compensation		(2,853	)		(3,191	)
Return of investment to noncontrolling interest		(25	)		(404	)
Net cash provided by (used in) financing activities		(195,996	)		271,749
Increase (decrease) in cash and cash equivalents		(27,286	)		83,734

Cash and cash equivalents, beginning of year		80,338			24,737
Cash and cash equivalents, end of period	$	53,052		$	108,471

Supplemental disclosures of cash flow information:
Cash paid (received) during the period:
Interest paid	$	20,913		$	26,265
Income taxes refunded, net	$	(116,451	)	$	(37,704	)
Operating cash outflow from operating leases	$	21,996		$	21,323
Non-cash investing activity:
Capital expenditures included in accounts payable	$	(18,401	)	$	4,936
Right-of-use assets obtained in exchange for lease obligations	$	7,413		$	38,754

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


								Accumulated
					Additional			Other
	Common Stock				Paid-in-			Comprehensive			Retained		Treasury Stock						Noncontrolling
	Shares		Amount		Capital			Income, Net			Earnings		Shares			Amount			Interests		Total
	(in thousands)
Balance at March 31, 2021		65,472	$	6,547	$	846,259		$	(61,204	)	$	2,590,018		(5,384	)	$	(296,353	)	$	3,477	$	3,088,744
Stock option exercises		—		—		11			—			—		2			83			—		94
Issuance of stock for equity awards, net of forfeitures		—		—		(1,615	)		—			—		29			1,615			—		—
Tax withholdings on equity award vesting		—		—		—			—			—		(13	)		(808	)		—		(808	)
Amortization of unearned share-based compensation		—		—		3,426			—			—		—			—			—		3,426
Total comprehensive income, net of taxes		—		—		—			3,521			10,190		—			—			162		13,873
Balance at June 30, 2021		65,472	$	6,547	$	848,081		$	(57,683	)	$	2,600,208		(5,366	)	$	(295,463	)	$	3,639	$	3,105,329


								Accumulated
					Additional			Other
	Common Stock				Paid-in-			Comprehensive			Retained		Treasury Stock						Noncontrolling
	Shares		Amount		Capital			Income, Net			Earnings		Shares			Amount			Interests			Total
	(in thousands)
Balance at March 31, 2020		65,472	$	6,547	$	837,879		$	(38,991	)	$	2,518,698		(5,475	)	$	(301,424	)	$	3,045		$	3,025,754
Issuance of stock for equity awards, net of forfeitures		—		—		(2,326	)		—			—		42			2,326			—			—
Tax withholdings on equity award vesting		—		—		—			—			—		(1	)		(26	)		—			(26	)
Amortization of unearned share-based compensation		—		—		3,321			—			—		—			—			—			3,321
Total comprehensive income, net of taxes		—		—		—			(2,126	)		25,002		—			—			261			23,137
Return of investment to noncontrolling interests		—		—		—			—			—		—			—			(202	)		(202	)
Balance at June 30, 2020		65,472	$	6,547	$	838,874		$	(41,117	)	$	2,543,700