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): OCTOBER 27, 2004
KIRBY CORPORATION
(Exact name of registrant as specified in its charter)
NEVADA 1-7615 74-1884980
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) 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 October 27, 2004, Kirby Corporation ("Kirby") issued a press release
announcing earnings for the three months and nine months ended September 30,
2004. 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 2004 and 2003 third
quarters and first nine months is included in the press release.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits:
99.1 Press release dated October 27, 2004
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: October 28, 2004
EXHIBIT INDEX
Exhibit 99.1 Press release dated October 27, 2004
[KIRBY LOGO]
KIRBY CORPORATION CONTACT: STEVE HOLCOMB
713-435-1135
FOR IMMEDIATE RELEASE
- ---------------------
KIRBY CORPORATION ANNOUNCES
2004 THIRD QUARTER AND NINE MONTHS RESULTS
- EARNINGS PER SHARE FOR THE 2004 THIRD QUARTER INCREASED TO $.53 FROM
$.46 IN THE 2003 THIRD QUARTER AND TO $1.44 FOR THE FIRST NINE MONTHS
OF 2004 FROM $1.22 IN THE 2003 FIRST NINE MONTHS
- 2004 THIRD QUARTER AND FIRST NINE MONTHS RESULTS WERE NEGATIVELY
IMPACTED BY HURRICANE IVAN, HIGHER FUEL COSTS, CLOSURE FOR REPAIR OF A
MAJOR LOCK ON THE OHIO RIVER AND SALE OF A 50% OWNED LIQUID PRODUCTS
TERMINAL
- 2004 FOURTH QUARTER EARNINGS PER SHARE GUIDANCE IS $.50 TO $.54
COMPARED WITH $.45 IN THE 2003 FOURTH QUARTER
- 2004 YEAR EARNINGS PER SHARE GUIDANCE INCREASED TO $1.94 TO $1.98
VERSUS $1.67 EARNED IN THE 2003 YEAR
HOUSTON, TEXAS (OCTOBER 27, 2004) - Kirby Corporation ("Kirby") (NYSE:KEX) today
announced net earnings for the third quarter ended September 30, 2004 of
$13,250,000, or $.53 per share, an 18% improvement compared with $11,211,000, or
$.46 per share, for the third quarter of 2003. The 2004 third quarter net
earnings were in line with Kirby's published earnings guidance range of $.50 to
$.54 per share. Consolidated revenues for the 2004 third quarter were
$173,389,000, a 12% increase compared with $154,507,000 for the 2003 third
quarter.
Kirby reported record net earnings for the first nine months of 2004 of
$36,048,000, or $1.44 per share, a 21% increase compared with $29,868,000, or
$1.22 per share, for the first nine months of 2003. Consolidated revenues for
the first nine months of 2004 were $501,580,000, a 9% increase compared with
$461,446,000 for the first nine months of 2003.
Marine transportation revenues and operating income for the 2004 third quarter
increased 14% and 25%, respectively, compared with the third quarter of 2003.
For the first nine months of 2004, marine transportation revenues and operating
income increased 10% and 20%, respectively, when compared with the first nine
months of 2003. The favorable results reflected strong petrochemical volumes as
customers continued to run their plants
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at high utilization rates. Black oil volumes were strong, driven by high
volumes of heavy refinery residual oil by-products, and refined products volumes
reflected typical Midwest summer demand. Agricultural chemical volumes remained
weak despite low Midwest inventory levels.
The marine transportation 2004 third quarter and first nine months results were
impacted by the following:
- HURRICANE IVAN - Made landfall near Gulf Shores, Alabama on September
16 and resulted in customer petrochemical plant and refinery closures,
diversion of marine equipment and closure of the Gulf Intracoastal
Waterway along the projected path of the storm. The initial projected
path was from New Orleans to the Florida panhandle. Hurricane Ivan
impacted the inland marine operations, as well as the operations of
the 35% owned offshore partnership with a Florida utility, lowering
Kirby's results by an estimated $.02 per share.
- DIESEL FUEL - The average price per gallon of diesel fuel consumed
increased to $1.16 for the 2004 third quarter compared with $1.00 for
the first six months of 2004. Higher fuel prices lowered Kirby's
results by an estimated $.01 per share.
- MCALPINE LOCK CLOSURE - Major lock on the Ohio River closed for repair
for 12 days in August, stopping all waterborne traffic with a
destination upriver of Louisville, Kentucky, including Cincinnati and
Pittsburgh. The closure of the lock lowered Kirby's results by an
estimated $.01 per share, less than initially forecasted.
- SALE OF LIQUID PRODUCTS TERMINAL - Sale of the 50% owned Shreveport,
La. terminal resulting in a third quarter 2004 loss on the sale of
$.015 per share. This loss is reflected in equity in earnings of
marine affiliates.
The diesel engine services segment's third quarter 2004 revenues were in line
with the 2003 third quarter revenues. Operating income improved by 7%,
principally from increased sales of higher margin power generation parts. The
segment's Midwest dry cargo river market was enhanced with the April 2004
purchase of the diesel engine services operations of Walker Paducah Corp. The
segment's power generation market benefited from direct parts sales to a major
power customer, while the rail market benefited from overall strong direct parts
sales. The Gulf Coast offshore oil service market, and East Coast and West
Coast marine markets remained weak, thereby negatively affecting the segment's
2004 third quarter results.
Equity in earnings of marine affiliates for the 2004 third quarter was a loss of
$782,000, and included the loss on the sale of the terminal and the negative
impacts on the Company's 35% owned offshore partnership from Hurricanes Ivan,
Frances and Jeanne.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Despite
some challenges in the third quarter with respect to hurricanes, fuel, lock
closures and the sale of the terminal, business levels allowed us to continue to
perform well. Had it not been
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for these challenges, we would have been comfortably above the high end of our
forecasted range. We are forecasting net earnings for the 2004 fourth quarter
in the $.50 to $.54 per share range. This guidance compares with net earnings
of $.45 per share reported for the 2003 fourth quarter. Our 2004 fourth quarter
guidance range is based on firm petrochemical and black oil volumes, normal
winter upriver refined products volumes, stronger imported agricultural chemical
volumes and increased delay days resulting from anticipated winter weather
conditions."
Mr. Pyne further commented, "For the 2004 year, Kirby's earnings per share
guidance is $1.94 to $1.98. This guidance compares with 2003 year earnings per
share of $1.67. Capital spending guidance for 2004 has been revised to $90 to
$93 million from $85 to $90 million and includes approximately $42.5 million for
the construction of 16 new 30,000 barrel petrochemical tank barges and 10 new
30,000 barrel black oil tank barges. The increased capital spending guidance
reflects higher steel prices, progress payments on barges scheduled for delivery
in 2005 and the timing of capital upgrades on existing equipment."
This earnings press release includes marine transportation performance measures
for both the 2004 and 2003 third quarters and first nine months. The
performance measures include ton miles, revenues per ton mile, towboats operated
and delay days. Comparable performance measures for the 2003 and 2002 years and
quarters are available at Kirby's web site under the caption Performance
Measurements in the Investor Relations section. Kirby's homepage can be
accessed by visiting www.kirbycorp.com.
-----------------
A conference call is scheduled at 9:00 a.m. central time tomorrow, Thursday,
October 28, 2004, to discuss the 2004 third quarter and first nine months, and
the outlook for the 2004 fourth quarter and full 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 approximately 11:00 a.m. central time on October 29 through 6:00
p.m. on Friday, November 26, 2004, by dialing 800-642-1687 for domestic callers
and 706-645-9291 for international callers. The conference ID number is
1755171. The conference call can also be accessed by visiting Kirby's homepage
at http://www.kirbycorp.com/ or at http://audioevent.mshow.com/191510. A replay
------------------------- ----------------------------------
will be available on each of those web sites following the conference call.
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 for the 2004 and 2003 third quarters and first nine months with GAAP net
earnings for the same periods is included in the Condensed Consolidated
Financial Information in this press release.
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. Through the diesel engine services segment, Kirby
provides after-market service for large
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medium-speed diesel engines used in marine, power generation and industrial, 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 the number of acquisitions made by Kirby. A listing of additional risk
factors can be found in Kirby's annual report on Form 10-K for the year ended
December 31, 2003, filed with the Securities and Exchange Commission.
CONFERENCE CALL INFORMATION
DATE: THURSDAY, OCTOBER 28, 2004
TIME: 9:00 A.M. CENTRAL TIME
U.S.: 888-328-2514
INT'L: 706-679-3262
LEADER: STEVE HOLCOMB
PASSCODE: KIRBY
WEBCAST: HTTP://WWW.KIRBYCORP.COM/ OR HTTP://AUDIOEVENT.MSHOW.COM/191510
------------------------- ----------------------------------
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A summary of the results for the third quarter and first nine months follows:
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
---------------------------------------------
THIRD QUARTER NINE MONTHS
--------------------- ---------------------
2004 2003 2004 2003
---------- --------- ---------- ---------
(unaudited, $ in thousands except per share amounts)
Revenues:
Marine transportation . . . . . . . . . . . . . . $ 153,114 $134,396 $ 437,672 $396,617
Diesel engine services . . . . . . . . . . . . . 20,275 20,111 63,908 64,829
---------- --------- ---------- ---------
173,389 154,507 501,580 461,446
---------- --------- ---------- ---------
Costs and expenses:
Costs of sales and operating expenses . . . . . . 108,690 98,800 320,008 300,804
Selling, general and administrative . . . . . . . 21,331 18,069 60,775 54,381
Taxes, other than on income . . . . . . . . . . . 3,398 3,385 10,800 9,921
Depreciation and other amortization . . . . . . . 14,015 13,369 41,403 38,495
Loss (gain) on disposition of assets . . . . . . 43 (71) 241 62
---------- --------- ---------- ---------
147,477 133,552 433,227 403,663
---------- --------- ---------- ---------
Operating income . . . . . . . . . . . . . . 25,912 20,955 68,353 57,783
Equity in earnings (loss) of marine affiliates . (782) 1,022 534 2,209
Other expense . . . . . . . . . . . . . . . . . . (415) (134) (737) (736)
Interest expense . . . . . . . . . . . . . . . . (3,344) (3,761) (10,008) (11,082)
---------- --------- ---------- ---------
Earnings before taxes on income . . . . . . . . 21,371 18,082 58,142 48,174
Provision for taxes on income . . . . . . . . . . (8,121) (6,871) (22,094) (18,306)
---------- --------- ---------- ---------
Net earnings . . . . . . . . . . . . . . . . . $ 13,250 $ 11,211 $ 36,048 $ 29,868
========== ========= ========== =========
Net earnings per share of common stock:
Basic . . . . . . . . . . . . . . . . . . . . . . $ .54 $ .46 $ 1.48 $ 1.24
Diluted . . . . . . . . . . . . . . . . . . . . . $ .53 $ .46 $ 1.44 $ 1.22
Common stock outstanding (in thousands):
Basic . . . . . . . . . . . . . . . . . . . . . . 24,507 24,166 24,435 24,112
Diluted . . . . . . . . . . . . . . . . . . . . . 25,190 24,545 25,066 24,429
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
--------------------------------------------
THIRD QUARTER NINE MONTHS
--------------------- ---------------------
2004 2003 2004 2003
---------- --------- ---------- ---------
(UNAUDITED, $IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
EBITDA: (1)
Net earnings . . . . . . . . . . . . . . . . . . $ 13,250 $ 11,211 $ 36,048 $ 29,868
Interest expense . . . . . . . . . . . . . . . . 3,344 3,761 10,008 11,082
Provision for taxes on income . . . . . . . . . . 8,121 6,871 22,094 18,306
Depreciation and other amortization . . . . . . . 14,015 13,369 41,403 38,495
---------- --------- ---------- ---------
$ 38,730 $ 35,212 $ 109,553 $ 97,751
========== ========= ========== =========
EBITDA per share - diluted (1) . . . . . . . . . . $ 1.54 $ 1.43 $ 4.37 $ 4.00
Capital expenditures . . . . . . . . . . . . . . . $ 19,750 $ 14,464 $ 75,810 $ 52,187
Acquisitions of businesses and marine equipment . . $ - $ - $ 11,085 $ 37,816
SEPTEMBER 30,
---------------------
2004 2003
---------- ---------
(UNAUDITED, $IN THOUSANDS)
Long-term debt, including current portion . . . . . . . . . . . . . . . $ 251,397 $270,049
Stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . $ 414,634 $356,590
Debt to capitalization ratio . . . . . . . . . . . . . . . . . . . . . 37.7% 43.1%
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MARINE TRANSPORTATION STATEMENTS OF EARNINGS
--------------------------------------------
THIRD QUARTER NINE MONTHS
----------------------------- ----------------------
2004 2003 2004 2003
-------------- ------------- ---------- ----------
(UNAUDITED, $IN THOUSANDS)
Marine transportation revenues . . . . . . . $ 153,114 $ 134,396 $ 437,672 $ 396,617
-------------- ------------- ---------- ----------
Costs and expenses:
Costs of sales and operating expenses . . . 93,579 83,492 272,626 251,713
Selling, general and administrative . . . . 16,887 14,216 47,619 42,836
Taxes, other than on income . . . . . . . . 3,293 3,206 10,475 9,450
Depreciation and other amortization . . . . 13,286 12,654 39,148 36,304
-------------- ------------- ---------- ----------
127,045 113,568 369,868 340,303
-------------- ------------- ---------- ----------
Operating income . . . . . . . . . . . . $ 26,069 $ 20,828 $ 67,804 $ 56,314
============== ============= ========== ==========
Operating margins . . . . . . . . . . . . 17.0% 15.5% 15.5% 14.2%
============== ============= ========== ==========
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
---------------------------------------------
THIRD QUARTER NINE MONTHS
----------------------------- ----------------------
2004 2003 2004 2003
-------------- ------------- ---------- ----------
(UNAUDITED, $IN THOUSANDS)
Diesel engine services revenues . . . . . . . $ 20,275 $ 20,111 $ 63,908 $ 64,829
-------------- ------------- ---------- ----------
Costs and expenses:
Costs of sales and operating expenses . . . 15,102 15,246 47,269 48,951
Selling, general and administrative . . . . 3,041 2,859 9,092 8,607
Taxes, other than income . . . . . . . . . 95 81 268 241
Depreciation and amortization . . . . . . . 264 272 883 788
-------------- ------------- ---------- ----------
18,502 18,458 57,512 58,587
-------------- ------------- ---------- ----------
Operating income . . . . . . . . . . . . $ 1,773 $ 1,653 $ 6,396 $ 6,242
============== ============= ========== ==========
Operating margins . . . . . . . . . . . . 8.7% 8.2% 10.0% 9.6%
============== ============= ========== ==========
OTHER COSTS AND EXPENSES
------------------------
THIRD QUARTER NINE MONTHS
----------------------------- ----------------------
2004 2003 2004 2003
-------------- ------------- ---------- ----------
(UNAUDITED, $IN THOUSANDS)
General corporate expenses . . . . . . . . . $ 1,887 $ 1,597 $ 5,606 $ 4,711
============== ============= ========== ==========
Loss (gain) on disposition of assets . . . . $ 43 $ (71) $ 241 $ 62
============== ============= ========== ==========
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MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
-----------------------------------------------
THIRD QUARTER NINE MONTHS
----------------------------- ----------------------
2004 2003 2004 2003
-------------- ------------- ---------- ----------
Ton Miles (in millions) (2) . . . . . . . . . 4,238 4,021 12,294 11,467
Revenue/Ton Mile (cents/tm) (3) . . . . . . . 3.6 3.3 3.6 3.5
Towboats operated (average) (4) . . . . . . . 237 222 235 226
Delay Days (5). . . . . . . . . . . . . . . . 1,658 1,001 5,839 4,852
Average cost per gallon of fuel consumed . . . $ 1.16 $ .86 $ 1.04 $ .89
Tank barges:
Active . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888 882
Inactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 70
Barrel capacities (in millions):
Active . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.4 16.0
Inactive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 1.3
- -------------------------------
(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) Marine transportation revenues divided by ton miles. Example: Third quarter
2004 revenues of $153,114,000 divided by 4,238,000,000 ton miles = 3.6
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 tank
barges) during transit. The measure includes transit delays caused by
weather, lock congestion and other navigational factors.
###
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