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 March 31, 2022

 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 May 6, 2022, 60.3 million 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)


	March 31, 2022			December 31, 2021
	($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	32,398		$	34,813
Accounts receivable:
Trade – less allowance for doubtful accounts		420,823			417,958
Other		125,757			149,964
Inventories – net		360,457			331,350
Prepaid expenses and other current assets		75,896			69,780
Total current assets		1,015,331			1,003,865

Property and equipment		5,391,988			5,392,851
Accumulated depreciation		(1,731,674	)		(1,714,336	)
Property and equipment – net		3,660,314			3,678,515

Operating lease right-of-use assets		164,986			167,730
Goodwill		438,748			438,748
Other intangibles, net		57,934			60,070
Other assets		45,479			50,135
Total assets	$	5,382,792		$	5,399,063

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank notes payable	$	3,097		$	1,934
Income taxes payable		93			—
Accounts payable		218,907			199,088
Accrued liabilities		188,302			236,078
Current portion of operating lease liabilities		34,454			33,902
Deferred revenues		68,982			72,770
Total current liabilities		513,835			543,772

Long-term debt, net – less current portion		1,151,638			1,161,433
Deferred income taxes		580,014			574,152
Operating lease liabilities – less current portion		156,271			159,672
Other long-term liabilities		69,169			71,252
Total long-term liabilities		1,957,092			1,966,509

Contingencies and commitments		—			—

Equity:
Kirby stockholders’ equity:
Common stock, $0.10 par value per share. Authorized 120 million shares, issued 65.5 million shares		6,547			6,547
Additional paid-in capital		853,610			854,512
Accumulated other comprehensive income – net		(25,477	)		(25,966	)
Retained earnings		2,363,873			2,346,439
Treasury stock – at cost, 5.2 million shares at March 31, 2022 and 5.4 million at December 31, 2021		(289,098	)		(295,208	)
Total Kirby stockholders’ equity		2,909,455			2,886,324
Noncontrolling interests		2,410			2,458
Total equity		2,911,865			2,888,782
Total liabilities and equity	$	5,382,792		$	5,399,063

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF EARNINGS

(Unaudited)


	Three Months Ended March 31,
	2022			2021
	($ in thousands, except per share amounts)
Revenues:
Marine transportation	$	355,536		$	300,951
Distribution and services		255,246			195,899
Total revenues		610,782			496,850

Costs and expenses:
Costs of sales and operating expenses		450,618			363,040
Selling, general and administrative		75,765			69,629
Taxes, other than on income		9,590			8,260
Depreciation and amortization		49,964			54,890
Gain on disposition of assets		(4,849	)		(2,133	)
Total costs and expenses		581,088			493,686

Operating income		29,694			3,164
Other income		4,308			3,791
Interest expense		(10,203	)		(10,966	)

Earnings (loss) before taxes on income		23,799			(4,011	)
(Provision) benefit for taxes on income		(6,213	)		891

Net earnings (loss)		17,586			(3,120	)
Net earnings attributable to noncontrolling interests		(152	)		(255	)

Net earnings (loss) attributable to Kirby	$	17,434		$	(3,375	)

Net earnings (loss) per share attributable to Kirby common stockholders:
Basic	$	0.29		$	(0.06	)
Diluted	$	0.29		$	(0.06	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		Three Months Ended March 31,
		2022			2021
	($ in thousands)
Net earnings (loss)		$	17,586		$	(3,120	)

Other comprehensive income (loss), net of taxes:
Pension and postretirement benefits			13			745
Foreign currency translation adjustments			476			(497	)
Total other comprehensive income (loss), net of taxes			489			248

Total comprehensive income (loss), net of taxes			18,075			(2,872	)
Net earnings attributable to noncontrolling interests			(152	)		(255	)

Comprehensive income (loss) attributable to Kirby		$	17,923		$	(3,127	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)


	Three Months Ended March 31,
	2022			2021
	($ in thousands)
Cash flows from operating activities:
Net earnings (loss)	$	17,586		$	(3,120	)
Adjustments to reconcile net earnings (loss) to net cash provided by operations:
Depreciation and amortization		49,964			54,890
Provision (benefit) for deferred income taxes		5,856			(533	)
Amortization of share-based compensation		5,965			5,722
Amortization of major maintenance costs		7,113			8,360
Other		(3,480	)		(1,138	)
Increase (decrease) in cash flows resulting from changes in operating assets and liabilities, net		(50,782	)		38,377
Net cash provided by operating activities		32,222			102,558

Cash flows from investing activities:
Capital expenditures		(35,075	)		(14,052	)
Acquisitions of businesses		(3,900	)		—
Proceeds from disposition of assets		14,280			4,754
Net cash used in investing activities		(24,695	)		(9,298	)

Cash flows from financing activities:
Borrowings (payments) on bank credit facilities, net		1,163			(119,606	)
Payments on long-term debt		(10,000	)		—
Proceeds from exercise of stock options		2,336			411
Payments related to tax withholding for share-based compensation		(3,093	)		(2,045	)
Return of investment to noncontrolling interest and other		(348	)		(25	)
Net cash used in financing activities		(9,942	)		(121,265	)
Decrease in cash and cash equivalents		(2,415	)		(28,005	)

Cash and cash equivalents, beginning of year		34,813			80,338
Cash and cash equivalents, end of period	$	32,398		$	52,333

Supplemental disclosures of cash flow information:
Cash paid (received) during the period:
Interest paid	$	18,022		$	18,732
Income taxes refunded, net	$	(24	)	$	(117,659	)
Operating cash outflow from operating leases	$	11,040		$	10,688
Non-cash investing activity:
Capital expenditures included in accounts payable	$	(487	)	$	(7,207	)
Right-of-use assets obtained in exchange for lease obligations	$	6,464		$	6,219

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 December 31, 2021		65,472	$	6,547	$	854,512		$	(25,966	)	$	2,346,439		(5,361	)	$	(295,208	)	$	2,458		$	2,888,782
Stock option exercises		—		—		438			—			—		34			1,898			—			2,336
Issuance of stock for equity awards, net of forfeitures		—		—		(7,305	)		—			—		133			7,305			—			—
Tax withholdings on equity award vesting		—		—		—			—			—		(49	)		(3,093	)		—			(3,093	)
Amortization of share-based compensation		—		—		5,965			—			—		—			—			—			5,965
Total comprehensive income, net of taxes		—		—		—			489			17,434		—			—			152			18,075
Return of investment to noncontrolling interests		—		—		—			—			—		—			—			(200	)		(200	)
Balance at March 31, 2022		65,472	$	6,547	$	853,610		$	(25,477	)	$	2,363,873		(5,243	)	$	(289,098	)	$	2,410		$	2,911,865


								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 December 31, 2020		65,472	$	6,547	$	844,979		$	(61,452	)	$	2,593,393			(5,434	)	$	(299,161	)	$	3,247		$	3,087,553
Stock option exercises		—		—		19			—			—			8			392			—			411
Issuance of stock for equity awards, net of forfeitures		—		—		(4,461	)		—			—			81			4,461			—			—
Tax withholdings on equity award vesting		—		—		—			—			—			(39	)		(2,045	)		—			(2,045	)
Amortization of share-based compensation		—		—		5,722			—			—			—			—			—			5,722
Total comprehensive loss, net of taxes		—		—		—			248			(3,375	)		—			—			255			(2,872	)
Return of investment to noncontrolling interests		—		—		—			—			—			—			—			(25	)		(25	)
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

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

(1) Basis for Preparation of the Condensed Financial Statements

The condensed financial statements included herein have been prepared by Kirby Corporation and its consolidated subsidiaries (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies normally included in annual financial statements, have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain reclassifications have been made to reflect the current presentation of financial information.

(2)