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): January 24,
2007
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:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
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
January 24, 2007, Kirby Corporation (“Kirby”) issued a press release announcing
earnings for the three months and year ended December 31, 2006. 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 2006 and 2005 fourth quarters and full years is included
in
the press release.
|
Item
9.01.
|
Financial
Statements and Exhibits
|
|
(c)
|
Exhibits:
|
|
99.1
Press
release dated
January 24, 2007
|
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:
January 25, 2007
EXHIBIT
INDEX
Exhibit
99.1 Press release dated January 24,
2007
|
KIRBY
CORPORATION
|
Contact:
Steve Holcomb
|
|
|
713-435-1135
|
FOR
IMMEDIATE RELEASE
KIRBY
CORPORATION ANNOUNCES RECORD
2006
FOURTH QUARTER AND YEAR RESULTS
|
·
|
2006
fourth quarter earnings per share were $.45, an 18% increase compared
with
$.38 earned in the 2005 fourth quarter, despite a 31% increase in
weather
and navigational delays
|
|
·
|
2006
year earnings per share were $1.79, a 35% increase compared with
$1.33
earned in the 2005 year
|
|
·
|
2007
first quarter earnings per share guidance is $.40 to $.45 versus
$.43
earned in the 2006 first
quarter
|
|
·
|
2007
year earnings per share guidance is $1.95 to $2.10 versus $1.79 earned
in
the 2006 year
|
Houston,
Texas (January 24, 2007)
- Kirby
Corporation (“Kirby”) (NYSE:KEX) today announced record net earnings for the
fourth quarter ended December 31, 2006 of $23,938,000, or $.45 per share,
compared with $19,770,000, or $.38 per share, for the fourth quarter of 2005.
Consolidated revenues for the 2006 fourth quarter were $251,411,000, an 18%
increase compared with $213,261,000 for the 2005 fourth quarter.
Kirby
reported record net earnings for the 2006 year of $95,451,000, or $1.79 per
share, compared with $68,781,000, or $1.33 per share, for 2005. Consolidated
revenues for the 2006 year were $984,218,000, a 24% increase compared with
$795,722,000 for 2005.
Marine
transportation revenues and operating income for the 2006 fourth quarter
increased 9% and 10%, respectively, compared with the fourth quarter of 2005.
For the 2006 year, revenues and operating income increased 18% and 28%,
respectively, compared with 2005. The marine transportation operating margin
for
the 2006 fourth quarter was 19.4% compared with 19.3% for the fourth quarter
of
2005. For the 2006 year, the operating margin improved to 19.0% compared with
17.4% for 2005.
The
results for both periods reflected continued strong petrochemical, black oil
products and refined products volumes and higher contract rate renewals. The
2006 fourth quarter results were negatively impacted by unfavorable winter
weather conditions, principally fog and storm systems along the Gulf Coast
during December. Delay days were 31% higher than the 2005 fourth quarter.
Page
1 of
6
Diesel
engine services revenues and operating income for the 2006 fourth quarter
increased 77% and 139%, respectively, compared with the 2005 fourth quarter.
For
the 2006 year, revenues and operating income increased 61% and 105%,
respectively, compared with 2005. The record diesel engine services results
reflected the accretive acquisition of Global Power Holding Company (“Global”)
on June 7, 2006 and the acquisition of the assets of Marine Engine Specialists,
Inc. (“MES”) on July 21, 2006, as well as continued strong marine, offshore oil
service, power generation and railroad markets. Higher service rates and parts
pricing implemented during 2005 and 2006 also positively impacted the 2006
operating results. During the 2006 fourth quarter, the diesel engine services
segment did experience some expected seasonal softness in the Gulf Coast
high-speed market. The operating margin for the 2006 fourth quarter was 13.4%,
significantly higher than the 9.9% margin earned in the 2005 fourth quarter.
For
2006, the operating margin improved to 14.9% compared with 11.7% for
2005.
Commenting
on the 2006 fourth quarter and 2007 first quarter, Joe Pyne, Kirby’s President
and Chief Executive Officer, said, “We are pleased with our fourth quarter
performance despite record weather delays in December. Pricing continues to
be
strong in all our business segments. For the 2007 first quarter, we are
forecasting net earnings per share in the $.40 to $.45 range compared with
$.43
for the 2006 first quarter. We have repeatedly advised that the unusually
favorable winter weather conditions we experienced in the 2006 first quarter
would make the comparison with our 2007 first quarter guidance and actual
results difficult. Our 2007 first quarter guidance range reflects typical
volatile winter weather conditions, which historically decrease operating
efficiencies and increase delay days. For the 2007 year, our guidance range
is
$1.95 to $2.10 per share, compared with 2006 net earnings of $1.79 per share.
Capital spending guidance for 2007 is $135 to $145 million and includes
approximately $65 million for the construction of 26 tank barges and six
towboats. Delivery is scheduled throughout 2007 and into early 2008.”
This
earnings press release includes marine transportation performance measures
for
both the 2006 and 2005 periods. The performance measures include ton miles,
revenues per ton mile, towboats operated and delay days. Comparable performance
measures for the 2005 and 2004 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 10:00 a.m. central time tomorrow, Thursday,
January 25, 2007 to discuss the 2006 fourth quarter and year, and the outlook
for the 2007 first 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 12:00 p.m. central
time on January 25 through 6:00 p.m. on Friday, February 23, 2007, by dialing
800-642-1687 for domestic callers and 706-645-9291 for international callers.
The conference ID number is 5997085. The conference call can also be accessed
by
visiting Kirby’s homepage at http://www.kirbycorp.com/
or at
http://audioevent.mshow.com/318630/.
A
replay will be available on each of those web sites following the conference
call.
Page
2 of
6
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 2006 and 2005 fourth quarters and full years 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. 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 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 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, 2005, filed with the
Securities and Exchange Commission.
|
CONFERENCE
CALL INFORMATION
|
||||||
|
Date:
|
Thursday,
January 25, 2007
|
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/318630
|
|||||
Page
3 of
6
A
summary
of the results for the fourth quarter and year follows:
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
(unaudited,
$ in thousands except per share amounts)
|
|||||||||||||
|
Revenues:
|
|||||||||||||
|
Marine
transportation
|
$
|
202,665
|
$
|
185,788
|
$
|
807,216
|
$
|
685,999
|
|||||
|
Diesel
engine services
|
48,746
|
27,473
|
177,002
|
109,723
|
|||||||||
|
251,411
|
213,261
|
984,218
|
795,722
|
||||||||||
|
Costs
and expenses:
|
|||||||||||||
|
Costs
of sales and operating expenses
|
159,954
|
136,796
|
631,334
|
515,255
|
|||||||||
|
Selling,
general and administrative
|
28,128
|
23,861
|
107,728
|
88,648
|
|||||||||
|
Taxes,
other than on income
|
2,947
|
2,972
|
12,826
|
12,270
|
|||||||||
|
Depreciation
and amortization
|
17,102
|
14,735
|
64,396
|
57,405
|
|||||||||
|
Loss
(gain) on disposition of assets
|
(239
|
)
|
(397
|
)
|
(1,436
|
)
|
(2,360
|
)
|
|||||
|
207,892
|
177,967
|
814,848
|
671,218
|
||||||||||
|
Operating
income
|
43,519
|
35,294
|
169,370
|
124,504
|
|||||||||
|
Equity
in earnings of marine affiliates
|
66
|
534
|
707
|
1,933
|
|||||||||
|
Loss
on debt retirement
|
-
|
-
|
-
|
(1,144
|
)
|
||||||||
|
Other
expense
|
(217
|
)
|
(229
|
)
|
(674
|
)
|
(1,388
|
)
|
|||||
|
Interest
expense
|
(4,696
|
)
|
(3,527
|
)
|
(15,201
|
)
|
(12,783
|
)
|
|||||
|
Earnings
before taxes on income
|
38,672
|
32,072
|
154,202
|
111,122
|
|||||||||
|
Provision
for taxes on income
|
(14,734
|
)
|
(12,302
|
)
|
(58,751
|
)
|
(42,341
|
)
|
|||||
|
Net
earnings
|
$
|
23,938
|
$
|
19,770
|
$
|
95,451
|
$
|
68,781
|
|||||
|
Net
earnings per share of common stock:
|
|||||||||||||
|
Basic
|
$
|
.46
|
$
|
.39
|
$
|
1.82
|
$
|
1.37
|
|||||
|
Diluted
|
$
|
.45
|
$
|
.38
|
$
|
1.79
|
$
|
1.33
|
|||||
|
Common
stock outstanding (in thousands):
|
|||||||||||||
|
Basic
|
52,610
|
51,072
|
52,476
|
50,224
|
|||||||||
|
Diluted
|
53,410
|
52,234
|
53,304
|
51,562
|
|||||||||
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
(unaudited,
$ in thousands except per share amounts)
|
|||||||||||||
|
EBITDA:
(1)
|
|||||||||||||
|
Net
earnings
|
$
|
23,938
|
$
|
19,770
|
$
|
95,451
|
$
|
68,781
|
|||||
|
Interest
expense
|
4,696
|
3,527
|
15,201
|
12,783
|
|||||||||
|
Provision
for taxes on income
|
14,734
|
12,302
|
58,751
|
42,341
|
|||||||||
|
Depreciation
and amortization
|
17,102
|
14,735
|
64,396
|
57,405
|
|||||||||
|
$
|
60,470
|
$
|
50,334
|
$
|
233,799
|
$
|
181,310
|
||||||
|
Capital
expenditures
|
$
|
29,015
|
$
|
29,165
|
$
|
139,129
|
$
|
122,283
|
|||||
|
Acquisitions
of businesses and marine equipment
|
$
|
4,486
|
$
|
500
|
$
|
143,911
|
$
|
7,500
|
|||||
|
December
31,
|
|||||||
|
2006
|
2005
|
||||||
|
(unaudited,
$ in thousands)
|
|||||||
|
Long-term
debt, including current portion
|
$
|
310,362
|
$
|
200,036
|
|||
|
Stockholders’
equity
|
$
|
631,995
|
$
|
537,542
|
|||
|
Debt
to capitalization ratio
|
32.9
|
%
|
27.1
|
%
|
|||
Page
4 of
6
|
MARINE
TRANSPORTATION STATEMENTS OF EARNINGS
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
(unaudited,
$ in thousands)
|
|||||||||||||
|
Marine
transportation revenues
|
$
|
202,665
|
$
|
185,788
|
$
|
807,216
|
$
|
685,999
|
|||||
|
Costs
and expenses:
|
|||||||||||||
|
Costs
of sales and operating expenses
|
125,276
|
115,932
|
506,353
|
433,155
|
|||||||||
|
Selling,
general and administrative
|
19,320
|
17,517
|
75,326
|
67,752
|
|||||||||
|
Taxes,
other than on income
|
2,850
|
2,443
|
12,003
|
11,327
|
|||||||||
|
Depreciation
and amortization
|
15,846
|
13,953
|
60,309
|
54,474
|
|||||||||
|
163,292
|
149,845
|
653,991
|
566,708
|
||||||||||
|
Operating
income
|
$
|
39,373
|
$
|
35,943
|
$
|
153,225
|
$
|
119,291
|
|||||
|
Operating
margins
|
19.4
|
%
|
19.3
|
%
|
19.0
|
%
|
17.4
|
%
|
|||||
|
DIESEL
ENGINE SERVICES STATEMENTS OF EARNINGS
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
(unaudited,
$ in thousands)
|
|||||||||||||
|
Diesel
engine services revenues
|
$
|
48,746
|
$
|
27,473
|
$
|
177,002
|
$
|
109,723
|
|||||
|
Costs
and expenses:
|
|||||||||||||
|
Costs
of sales and operating expenses
|
34,678
|
20,864
|
124,971
|
82,095
|
|||||||||
|
Selling,
general and administrative
|
6,515
|
3,428
|
22,665
|
13,169
|
|||||||||
|
Taxes,
other than income
|
170
|
115
|
513
|
411
|
|||||||||
|
Depreciation
and amortization
|
841
|
333
|
2,479
|
1,174
|
|||||||||
|
42,204
|
24,740
|
150,628
|
96,849
|
||||||||||
|
Operating
income
|
$
|
6,542
|
$
|
2,733
|
$
|
26,374
|
$
|
12,874
|
|||||
|
Operating
margins
|
13.4
|
%
|
9.9
|
%
|
14.9
|
%
|
11.7
|
%
|
|||||
|
OTHER
COSTS AND EXPENSES
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
(unaudited,
$ in thousands)
|
|||||||||||||
|
General
corporate expenses
|
$
|
2,635
|
$
|
3,779
|
$
|
11,665
|
$
|
10,021
|
|||||
|
Gain
on disposition of assets
|
$
|
(239
|
)
|
$
|
(397
|
)
|
$
|
(1,436
|
)
|
$
|
(2,360
|
)
|
|
Page
5 of
6
|
MARINE
TRANSPORTATION PERFORMANCE MEASUREMENTS
|
|||||||||||||
|
Fourth
Quarter
|
Year
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
||||||||||
|
Ton
Miles (in millions) (2)
|
3,713
|
4,241
|
15,649
|
16,141
|
|||||||||
|
Revenue/Ton
Mile (cents/tm) (3)
|
5.2
|
4.4
|
4.9
|
4.3
|
|||||||||
|
Towboats
operated (average) (4)
|
243
|
242
|
241
|
242
|
|||||||||
|
Delay
Days (5)
|
2,440
|
1,863
|
7,489
|
9,022
|
|||||||||
|
Average
cost per gallon of fuel consumed
|
$
|
1.79
|
$
|
2.03
|
$
|
1.93
|
$
|
1.67
|
|||||
|
Tank
barges:
|
|||||||||||||
|
Active
|
904
|
897
|
|||||||||||
|
Inactive
|
54
|
67
|
|||||||||||
|
Barrel
capacities (in millions):
|
|||||||||||||
|
Active
|
17.0
|
16.7
|
|||||||||||
|
Inactive
|
1.0
|
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. For 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: Fourth
quarter 2006 inland marine revenues of $193,614,000 divided by
3,713,000,000 ton miles = 5.2 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 one or
more
tank barges) during transit. The measure includes transit delays
caused by
weather, lock congestion and other navigational
factors.
|
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