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 27, 2005
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 April 27, 2005, Kirby Corporation ("Kirby") issued a press release
announcing earnings for the three months ended March 31, 2005. 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 2005 and 2004 first
quarters is included in the press release.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits:
99.1 Press release dated April 27, 2005
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 28, 2005
EXHIBIT INDEX
Exhibit 99.1 Press release dated April 27, 2005
[GRAPHIC OMITTED]
KIRBY
KIRBY CORPORATION Contact: Steve Holcomb
713-435-1135
FOR IMMEDIATE RELEASE
- ---------------------
KIRBY CORPORATION ANNOUNCES RECORD RESULTS
FOR THE 2005 FIRST QUARTER
- - 2005 FIRST QUARTER EARNINGS PER SHARE WERE $.52, AN INCREASE OF 44%
OVER $.36 REPORTED FOR THE 2004 FIRST QUARTER
- - RESULTS REFLECT CONTINUED STRONG PETROCHEMICAL AND BLACK OIL PRODUCT
VOLUMES, FAVORABLE OPERATING CONDITIONS IN MARCH AND CONTRACT AND SPOT
MARKET RATE INCREASES
- - 2005 SECOND QUARTER EARNINGS PER SHARE GUIDANCE IS $.65 TO $.70 VERSUS
$.55 REPORTED FOR THE 2004 SECOND QUARTER
- - 2005 YEAR EARNINGS PER SHARE GUIDANCE INCREASED TO $2.45 TO $2.55
VERSUS $1.97 EARNED IN THE 2004 YEAR.
HOUSTON, TEXAS (APRIL 27, 2005) - Kirby Corporation ("Kirby") (NYSE:KEX) today
announced record net earnings for the first quarter ended March 31, 2005 of
$13,279,000, or $.52 per share, compared with net earnings of $9,020,000, or
$.36 per share, for the 2004 first quarter. The 2005 first quarter results were
in line with Kirby's April 14, 2005 announcement that earnings would exceed $.50
per share and above Kirby's original published earnings guidance range of $.42
to $.48 per share. Consolidated revenues for the 2005 first quarter were a
record $184,444,000, an increase of 17% over $157,315,000 reported for the 2004
first quarter.
Revenues for the marine transportation segment for the 2005 first quarter
increased 16% and operating income increased 42% compared with the first quarter
of 2004. The higher results reflected strong petrochemical and black oil
volumes, improved weather conditions in March, the impact of contract rate
increases during 2004 and in the 2005 first quarter, and higher spot market
prices. Spot market rates for most product lines averaged 4% to 5% higher than
the 2004 fourth quarter. In addition, effective January 1, 2005, escalators for
labor and the producer price index on contracts over a year in duration
positively impacted the first quarter.
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The diesel engine services segment for the 2005 first quarter reported 25%
higher revenues and operating income increased 42% compared with the
corresponding 2004 quarter. The higher results reflect strong in-house and
in-field service activity and direct parts sales in the majority of its markets,
and the acquisition of the diesel engine service operation and parts inventory
of Walker Paducah Corp. in April 2004. The U.S. Midwest and East Coast marine
markets, the U.S. railroad market, the offshore oil service market and the power
generation market all reflected improved activity. The operating margin for the
2005 first quarter was 12.6% compared with 11.2% for the 2004 first quarter.
Equity in earnings (loss) of marine affiliates consists primarily of a 35% owned
offshore partnership, operating four offshore dry-cargo barge and tug units, and
a 33% interest in Osprey Line, LLC, a barge feeder service for cargo containers
along the Gulf Intracoastal Waterway, several ports above Baton Rouge on the
Mississippi River, as well as coastal service along the Gulf of Mexico. Equity
in earnings (loss) of marine affiliates was a loss of $703,000 for the 2005
first quarter, reflecting a heavy shipyard schedule for the Company's 35% owned
offshore partnership and start-up costs for Osprey's coastal service along the
Gulf of Mexico, which began its service late last year.
Joe Pyne, President and Chief Executive Officer of Kirby, commented, "The first
quarter is normally the most difficult quarter for Kirby. During January and
February, stronger customer demand, particularly in the petrochemical and black
oil markets, was negatively impacted by poor navigational conditions, creating
pent-up demand for movements in March. Although total first quarter navigation
delay days were higher than in 2004, weather and river conditions improved
significantly in March, which allowed for better asset utilization and more
efficient use of horsepower. Total ton miles were about the same as the first
quarter of 2004, but product mix, contract and spot rate increases, and fuel
cost recovery resulted in a 16% growth in marine transportation revenue and a
42% increase in operating income."
Commenting on the 2005 second quarter market conditions and guidance, Mr. Pyne
said, "We expect our petrochemical and black oil markets to remain strong. We
anticipate a normal seasonal improvement in our upriver refined products market
and seasonal agricultural chemical volumes. For the 2005 second quarter, our
earnings per share guidance is $.65 to $.70, compared with $.55 per share
reported for the 2004 second quarter. For the 2005 year, we increased our
guidance to $2.45 to $2.55 per share from previous guidance of $2.20 to $2.30
per share. This guidance compares with 2004 net earnings of $1.97 per share.
Capital spending guidance for 2005 remains in the $110 to $120 million range and
includes approximately $65 million for the construction of 18 double hull 30,000
barrel capacity inland tank barges and 20 double hull 10,000 barrel capacity
inland tank barges. The $65 million estimate for the construction of new tank
barges is subject to the fluctuation of steel prices."
This earnings press release includes marine transportation performance measures
for both the 2005 and 2004 first quarters. The performance measures include ton
miles, revenues per ton mile, towboats operated and delay days. Comparable
performance measures for the 2004 and 2003 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.
- -----------------
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A conference call is scheduled at 10:00 a.m. central time tomorrow, Thursday,
April 28, 2005, to discuss the 2005 first quarter and outlook for the 2005
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 starting at approximately
12:00 p.m. central time on Thursday, April 28, through 6:00 p.m. central time on
Friday, May 27, 2005, by dialing 800-642-1687 for domestic callers and
706-645-9291 for international callers. The conference ID number is 5580272.
The conference call can also be accessed by visiting Kirby's homepage at
http://www.kirbycorp.com/ or at http://audioevent.mshow.com/229462. 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 2005 and 2004 first quarters 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 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 on 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, 2004, filed with the
Securities and Exchange Commission.
- --------------------------------------------------------------------------------
CONFERENCE CALL INFORMATION
DATE: THURSDAY, APRIL 28, 2005 LEADER: STEVE HOLCOMB
TIME: 10:00 A.M. CENTRAL TIME PASSCODE: KIRBY
U.S.: 888-328-2514 INT'L: 706-679-3262
WEBSITE: http://www.kirbycorp.com/ OR http://audioevent.mshow.com/229462
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- --------------------------------------------------------------------------------
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A summary of the results for the first quarter follows.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
---------------------------------------------
FIRST QUARTER
------------------------------------------
2005 2004
-------------------- --------------------
(UNAUDITED, $ IN THOUSANDS EXCEPT
PER SHARE AMOUNTS)
Revenues:
Marine transportation. . . . . . . . . . . . . $ 157,210 $ 135,493
Diesel engine services . . . . . . . . . . . . 27,234 21,822
-------------------- --------------------
184,444 157,315
-------------------- --------------------
Costs and expenses:
Costs of sales and operating expenses. . . . . 119,927 102,927
Selling, general and administrative. . . . . . 20,959 19,965
Taxes, other than on income. . . . . . . . . . 3,186 3,252
Depreciation and amortization. . . . . . . . . 14,981 13,797
Loss (gain) on disposition of assets . . . . . (192) 2
-------------------- --------------------
158,861 139,943
-------------------- --------------------
Operating income . . . . . . . . . . . . . . 25,583 17,372
Equity in earnings (loss) of marine affiliates (703) 822
Other expense. . . . . . . . . . . . . . . . . (316) (271)
Interest expense . . . . . . . . . . . . . . . (3,146) (3,374)
-------------------- --------------------
Earnings before taxes on income. . . . . . . 21,418 14,549
Provision for taxes on income. . . . . . . . . (8,139) (5,529)
-------------------- --------------------
Net earnings . . . . . . . . . . . . . . . . $ 13,279 $ 9,020
==================== ====================
Net earnings per share of common stock:
Basic. . . . . . . . . . . . . . . . . . . . . $ 0.53 $ 0.37
Diluted. . . . . . . . . . . . . . . . . . . . $ 0.52 $ 0.36
Common stock outstanding (in thousands):
Basic. . . . . . . . . . . . . . . . . . . . . 24,854 24,345
Diluted. . . . . . . . . . . . . . . . . . . . 25,578 24,913
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
--------------------------------------------
FIRST QUARTER
------------------------------------------
2005 2004
-------------------- --------------------
(UNAUDITED, $ IN THOUSANDS EXCEPT
PER SHARE AMOUNTS)
EBITDA: (1)
Net earnings. . . . . . . . . . . . . . . $ 13,279 $ 9,020
Interest expense. . . . . . . . . . . . . 3,146 3,374
Provision for taxes on income . . . . . . 8,139 5,529
Depreciation and amortization . . . . . . 14,981 13,797
-------------------- --------------------
$ 39,545 $ 31,720
==================== ====================
Capital expenditures. . . . . . . . . . . . . $ 24,023 $ 24,047
Acquisition of marine equipment . . . . . . . $ - $ 1,110
MARCH 31,
------------------------------------------
2005 2004
-------------------- --------------------
(UNAUDITED, $ IN THOUSANDS)
Long-term debt, including current portion . . $ 205,139 $ 250,409
Stockholders' equity. . . . . . . . . . . . . $ 454,672 $ 381,674
Debt to capitalization ratio. . . . . . . . . 31.1% 39.6%
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MARINE TRANSPORTATION STATEMENTS OF EARNINGS
---------------------------------------------
FIRST QUARTER
------------------------------------------
2005 2004
-------------------- --------------------
(UNAUDITED, $ IN THOUSANDS)
Marine transportation revenues. . . . . . $ 157,210 $ 135,493
-------------------- --------------------
Costs and expenses:
Costs of sales and operating expenses 99,652 86,966
Selling, general and administrative . 16,312 15,504
Taxes, other than on income . . . . . 3,050 3,133
Depreciation and amortization . . . . 14,275 13,016
-------------------- --------------------
133,289 118,619
-------------------- --------------------
Operating income. . . . . . . . . . $ 23,921 $ 16,874
==================== ====================
Operating margins . . . . . . . . . 15.2% 12.5%
==================== ====================
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
---------------------------------------------
FIRST QUARTER
------------------------------------------
2005 2004
-------------------- --------------------
(UNAUDITED, $ IN THOUSANDS)
Diesel engine services revenues . . . . . $ 27,234 $ 21,822
-------------------- --------------------
Costs and expenses:
Costs of sales and operating expenses 20,269 15,934
Selling, general and administrative . 3,110 3,034
Taxes, other than on income . . . . . 110 82
Depreciation and amortization . . . . 278 333
-------------------- --------------------
23,767 19,383
-------------------- --------------------
Operating income. . . . . . . . . . $ 3,467 $ 2,439
==================== ====================
Operating margins . . . . . . . . . 12.7% 11.2%
==================== ====================
OTHER COSTS AND EXPENSES
------------------------
FIRST QUARTER
-----------------------------------------
2005 2004
-------------------- -------------------
(UNAUDITED, $ IN THOUSANDS)
General corporate expenses . . . . . . . . . . $ 1,997 $ 1,939
==================== ===================
Loss (gain) on disposition of assets . . . . . $ (192) $ 2
==================== ===================
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MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
----------------------------------------------
FIRST QUARTER
-------------------
2005 2004
---------- ---------
Ton Miles (in millions) (2) . . . . . . . . . . 3,738 3,735
Revenue/Ton Mile (cents/tm) (3) . . . . . . . . 4.2 3.6
Towboats operated (average) (4) . . . . . . . . 239 233
Delay Days (5). . . . . . . . . . . . . . . . . 3,289 2,359
Average cost per gallon of fuel consumed. . . . $ 1.32 $ .99
Tank barges:
Active. . . . . . . . . . . . . . . . . . . 878 874
Inactive. . . . . . . . . . . . . . . . . . 64 71
Barrel Capacities (in millions):
Active. . . . . . . . . . . . . . . . . . . 16.3 16.0
Inactive. . . . . . . . . . . . . . . . . . 1.2 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: First
quarter 2005 revenues of $157,210,000 divided by 3,738,000,000 ton miles =
4.2 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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