[KIRBY LOGO]
KIRBY CORPORATION Contact: Steve Holcomb
713-435-1135
FOR IMMEDIATE RELEASE
KIRBY CORPORATION ANNOUNCES
2003 FIRST QUARTER RESULTS
o 2003 FIRST QUARTER EARNINGS PER SHARE WERE $.28, IN LINE WITH REVISED
GUIDANCE OF $.26 TO $.30
o RESULTS NEGATIVELY IMPACTED BY SHARP INCREASE IN DIESEL FUEL PRICES
AND NAVIGATIONAL DELAYS CAUSED BY WEATHER AND REPAIRS TO A MAJOR LOCK
ON THE GULF INTRACOASTAL WATERWAY
o 2003 SECOND QUARTER EARNINGS PER SHARE GUIDANCE IS $.44 TO $.48
VERSUS $.36 EARNED IN THE 2002 SECOND QUARTER
o 2003 YEAR EARNINGS PER SHARE GUIDANCE LOWERED BY 10 CENTS TO $1.65 TO
$1.75
HOUSTON, TEXAS (APRIL 24, 2003) - Kirby Corporation ("Kirby") (NYSE:KEX) today
announced net earnings for the first quarter ended March 31, 2003 of
$6,868,000, or $.28 per share, compared with $8,808,000, or $.36 per share, for
the 2002 first quarter. The 2003 first quarter results were in line with
Kirby's revised published earnings guidance of $.26 to $.30 per share.
Consolidated revenue for the first quarter was $148,200,000 compared with
$131,437,000 for the 2002 first quarter.
The marine transportation segment reported a 15% increase in revenue for the
2003 first quarter compared with the first quarter of 2002. The increase
primarily was the result of the October 2002 transaction with Coastal Towing,
Inc. ("Coastal"), whereby Kirby purchased 10 tank barges and 13 towboats and
assumed the management for Coastal's remaining 54 active black oil tank barges.
Revenues were also impacted by the January 2003 purchase of the inland marine
fleet of SeaRiver Maritime, Inc. ("SeaRiver"), the U.S. marine transportation
affiliate of Exxon Mobil Corporation. The SeaRiver fleet included 48 double
hull inland tank barges and seven towboats, and the assumption of the leases on
16 double hull tank barges. Kirby also entered into a contract to provide
inland marine transportation services to SeaRiver.
Volumes from the upriver transportation of petrochemicals were above the prior
year first quarter, reflecting the continued strengthening of Midwest volumes
since the 2002 second half. Black oil volumes also increased due to greater
demand for residual oil as a
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substitute boiler fuel for high priced natural gas and cat cracker feedstock
for the production of refined products.
The higher revenue was more than offset by increased operating expenses, caused
by significantly higher fuel costs and navigational delays, which necessitated
the use of additional towboats to meet service requirements and schedules. The
average price per gallon of diesel fuel consumed in the 2003 first quarter was
$1.03, up 78% from the 2002 first quarter average price of 58 cents and 26%
higher than the 2002 fourth quarter average price of 82 cents. The effect of
the higher fuel prices reduced Kirby's 2003 first quarter earnings by an
estimated $.05 per share.
Navigational delays during the 2003 first quarter were caused by periods of
both low and high water on the Mississippi River System, and numerous instances
of fog and high winds along the Gulf Intracoastal Waterway. Delays also
resulted from repairs to a major lock located on the Gulf Intracoastal
Waterway.
The diesel engine services segment reported slightly higher revenue and
operating income for the 2003 first quarter compared with the corresponding
2002 period. Strong power generation, rail and East Coast marine markets offset
the continued weak Gulf Coast oil and gas services market, and the Midwest
industrial and dry cargo inland marine markets.
Joe Pyne, Kirby's President and Chief Executive Officer, commented, "The first
quarter is historically our lowest earnings quarter, as weather often affects
our ability to operate efficiently. Our first quarter results are in line with
our revised earnings guidance of $.26 to $.30 per share. Our transportation
volume levels held up reasonably well during the first quarter, in spite of the
continued uncertainty in the U.S. economy and the impact of the Iraq war."
Mr. Pyne further commented, "Looking at anticipated market conditions for the
2003 second quarter, we expect our petrochemical volumes to be consistent with
2003 first quarter volumes. With high natural gas prices, our black oil volumes
should continue to be driven by demand for residual fuel, which serves as a
substitute boiler fuel for natural gas. We look for a seasonal improvement in
asphalt volumes. Refined products volumes are currently seeing seasonal
improvements. We also anticipate our agricultural chemical volumes will improve
this quarter."
Further commenting on the second quarter as well as the 2003 year, Mr. Pyne
said, "Based on the above noted market factors and the continued uncertainty in
the U.S. economy, our earnings per share guidance for the 2003 second quarter
is $.44 to $.48, compared with $.36 earned in the 2002 second quarter. For the
2003 year, we are lowering our earnings per share guidance to $1.65 to $1.75
from previous guidance of $1.75 to $1.85. This guidance compares with 2002 net
earnings per share of $1.13 per share, which included $.51 per share of
impairment charges."
Kirby has scheduled a conference call at 10:00 a.m. central time today, April
24, 2003, to discuss the 2003 first quarter, and the outlook for the 2003
second quarter and full year. The conference call number is 888-391-6570 for
domestic callers and 630-395-0127 for international callers. This passcode is
Kirby and the leader's name is Steve Holcomb.
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An audio playback will be available starting at approximately 12:00 noon
central time on April 24 through 5:00 p.m. on Friday, May 23, 2003, by dialing
888-566-0432 for domestic callers and 402-998-0608 for international callers.
The conference call can also be accessed by visiting Kirby's homepage at
http://www.kirbycorp.com/ or at http://www.vcall.com/. 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 2003 and 2002 first quarters with GAAP net earnings for the same
periods is included in the Condensed Consolidated Supplemental Information in
this press release.
Kirby Corporation, based in Houston, Texas, operates 905 inland tank barges and
229 inland 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 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, 2002, filed with the Securities and Exchange Commission.
CONFERENCE CALL INFORMATION
- ---------------------------
Date: April 24, 2003
Time: 10:00 a.m. central time
U.S.: 888-391-6570
Int'l: 630-395-0127
Leader: Steve Holcomb
Passcode: Kirby
Webcast: http://www.kirbycorp.com/ or http://www.vcall.com/
------------------------- ---------------------
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A summary of the results for the first quarter follows.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
First Quarter
---------------------------------
2003 2002
------------- ------------
(unaudited, $ in thousands except
per share amounts)
Revenues by reportable segment:
Marine transportation.................................. $ 125,065 $ 108,990
Diesel engine services................................. 23,135 22,447
----------- -----------
$ 148,200 $ 131,437
=========== ===========
Operating profits by reportable segment:
Marine transportation.................................. $ 13,704 $ 15,961
Diesel engine services................................. 2,417 2,371
----------- -----------
16,121 18,332
Equity in earnings of marine affiliates................ 436 803
Other income (expense)................................. (410) 14
General corporate expenses............................. (1,616) (1,436)
Interest expense....................................... (3,454) (3,507)
----------- -----------
Earnings before taxes on income..................... 11,077 14,206
Provision for taxes on income.......................... (4,209) (5,398)
----------- -----------
Net earnings........................................ $ 6,868 $ 8,808
=========== ===========
Earnings per share of common stock:
Basic.................................................. $ 0.29 $ 0.37
Diluted................................................ $ 0.28 $ 0.36
Common stock outstanding (in thousands):
Basic.................................................. 24,062 24,079
Diluted................................................ 24,327 24,545
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CONDENSED CONSOLIDATED SUPPLEMENTAL INFORMATION
First Quarter
---------------------------------
2003 2002
------------- ------------
(unaudited, $ in thousands except
per share and per gallon amounts)
Operating margins:
Marine transportation............................. 11.0 % 14.6 %
Diesel engine services............................ 10.4 % 10.6 %
EBITDA: *
Net earnings...................................... $ 6,868 $ 8,808
Provision for taxes on income..................... 4,209 5,398
Interest expense.................................. 3,454 3,507
Depreciation and amortization..................... 12,232 11,522
----------- -----------
$ 26,763 $ 29,235
=========== ===========
EBITDA per share - diluted * ......................... $ 1.10 $ 1.19
Capital expenditures.................................. $ 18,752 $ 17,320
Acquisition of tank barges and towboats............... $ 35,566 $ 2,800
Average cost per gallon of fuel consumed.............. $ 1.03 $ 0.58
Long-term debt, including current portion............. $ 295,517 $ 242,153
Stockholders' equity.................................. $ 330,582 $ 313,034
Debt to capitalization ratio.......................... 47.2 % 43.6 %
Tank barges:
Active............................................ 905 808
Inactive.......................................... 62 50
Towboats:
Active............................................ 229 205
Inactive.......................................... 13 9
* 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 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.
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