[GRAPHIC OMITED]
KIRBY CORPORATION Contact: Steve Holcomb
713-435-1135
FOR IMMEDIATE RELEASE
- ---------------------
KIRBY CORPORATION ANNOUNCES
2004 FIRST QUARTER RESULTS
- - 2004 FIRST QUARTER EARNINGS PER SHARE WERE $.36, AN INCREASE OF 29% OVER
$.28 REPORTED FOR THE 2003 FIRST QUARTER
- - RESULTS REFLECT CONTINUED STRENGTHENING OF PETROCHEMICAL VOLUMES AND STRONG
BLACK OIL PRODUCT VOLUMES
- - 2004 SECOND QUARTER EARNINGS PER SHARE GUIDANCE IS $.50 TO $.54 VERSUS $.48
REPORTED FOR THE 2003 SECOND QUARTER
HOUSTON, TEXAS (APRIL 28, 2004) - Kirby Corporation ("Kirby") (NYSE:KEX) today
announced net earnings for the first quarter ended March 31, 2004 of $9,020,000,
or $.36 per share, compared with net earnings of $6,868,000, or $.28 per share,
for the 2003 first quarter. The 2004 first quarter results were at the top end
of Kirby's published earnings guidance range of $.30 to $.36 per share.
Consolidated revenues for the 2004 first quarter were $157,315,000 compared with
$148,200,000 for the 2003 first quarter.
Revenues for the marine transportation segment increased 8% and operating income
increased 23% for the 2004 first quarter compared with the first quarter of
2003. The higher results reflected continued strengthening of petrochemical
volumes and stronger black oil volumes, as well as fuel, labor and consumer
price index escalators on numerous contracts. The increases also reflected the
full 2004 first quarter impact of the January 15, 2003 purchase of the inland
tank barge fleet of SeaRiver Maritime, Inc., the U.S. marine transportation
affiliate of Exxon Mobil Corporation.
During the 2004 first quarter, the marine transportation segment's petrochemical
volumes continued to strengthen, a reflection of an improving U. S. economy.
Black oil products volumes were strong, the result of refinery maintenance
schedules, and refined products volumes were greater than anticipated. Liquid
fertilizer volumes were weaker than anticipated due to high Midwest inventory
levels.
The diesel engine services segment reported 6% lower revenues, but slightly
higher operating income for the 2004 first quarter compared with the
corresponding 2003 quarter. During the 2004 first quarter, the Midwest
operations benefited from a strong
1
Great Lakes market, along with a continued improvement in the Midwest dry cargo
market. The segment's Gulf Coast, East Coast and power generation markets were
weak.
On April 7, 2004, the Company purchased the Paducah, Kentucky diesel service
operation and parts inventory of Walker Paducah Corp. ("Walker"), a subsidiary
of Ingram Barge Company, for approximately $5,800,000 in cash. The annual
revenues attributable to the Walker asset purchase are estimated in the
$7,000,000 to $8,000,000 range and the operating margin is estimated to be
consistent with the diesel engine services historical margin.
On April 15, 2004, the Company purchased a one-third interest in Osprey Line,
LLC ("Osprey") for $4,220,000. Osprey, founded in 2000, operates a barge feeder
service for cargo containers between Houston, New Orleans and Baton Rouge, as
well as ports located above Baton Rouge on the Mississippi River. Revenues for
Osprey for 2003 were approximately $11,700,000. The purchase will be accounted
for under the equity method of accounting.
Joe Pyne, President and Chief Executive Officer of Kirby, commented, "During the
2004 first quarter, several of our core transportation markets improved. The
first quarter is always difficult because of poor operating conditions caused by
weather. Our 2004 first quarter was no exception. Navigational delays totaled
2,359 days, only 9% less than the record 2,583 days recorded in the 2003 first
quarter."
Commenting on the 2004 second quarter market conditions and guidance, Mr. Pyne
said, "We expect our transportation markets to generally continue to improve
this quarter. The economy appears to be in better shape and the demand for
petrochemical and refined products volumes is stronger. We anticipate the black
oil market to remain firm, but liquid fertilizer volumes are anticipated to
remain seasonally weak. For the 2004 second quarter, our earnings per share
guidance is $.50 to $.54, compared with $.48 reported for the 2003 second
quarter. For the 2004 year, our guidance remains at $1.85 to $1.95 per share.
This guidance compares with 2003 net earnings of $1.67 per share. Capital
spending guidance for 2004 remains in the $85 to $90 million range and will
include approximately $41 million for the construction of 16 new 30,000 barrel
petrochemical tank barges and 10 new 30,000 barrel black oil tank barges."
This earnings press release includes marine transportation performance measures
for both the 2004 and 2003 first quarters. 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 10:00 a.m. central time tomorrow, Thursday,
April 29, 2004, to discuss the 2004 first quarter and outlook for the 2004 year.
The conference call number is 877-546-1574 for domestic callers and 712-257-0019
for international callers. The passcode is Kirby and the leader's name is Steve
Holcomb. An audio playback will be available starting at approximately 12:00
noon central time on Thursday, April 29 through 6:00 p.m. central time on
Friday, May 28, 2004, by dialing 888-562-6189 for domestic callers and
402-280-9984 for international callers. The conference call can also
2
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 2004 and 2003 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 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 the timing,
magnitude and number of acquisitions made by Kirby. A list 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, April 29, 2004
Time: 10:00 a.m. central time
U.S.: 877-546-1574
Int'l: 712-257-0019
Leader: Steve Holcomb
Passcode: Kirby
- Tables follow -
3
A summary of the results for the first quarter follows.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
---------------------------------------------
First Quarter
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $ in thousands except
per share amounts)
Revenues:
Marine transportation . . . . . . . . . . . . $ 135,493 $ 125,065
Diesel engine services. . . . . . . . . . . . 21,822 23,135
--------------- ---------------
157,315 148,200
--------------- ---------------
Costs and expenses:
Costs of sales and operating expenses . . . . 102,927 100,851
Selling, general and administrative . . . . . 19,965 17,561
Taxes, other than on income . . . . . . . . . 3,252 3,051
Depreciation and other amortization . . . . . 13,797 12,232
Loss on disposition of assets . . . . . . . . 2 7
--------------- ---------------
139,943 133,702
Operating income. . . . . . . . . . . . . . 17,372 14,498
Equity in earnings of marine affiliates . . . 822 436
Other expense . . . . . . . . . . . . . . . . (271) (403)
Interest expense. . . . . . . . . . . . . . . (3,374) (3,454)
--------------- ---------------
Earnings before taxes on income . . . . . . 14,549 11,077
Provision for taxes on income . . . . . . . . (5,529) (4,209)
--------------- ---------------
Net earnings. . . . . . . . . . . . . . . . $ 9,020 $ 6,868
=============== ===============
Net earnings per share of common stock:
Basic . . . . . . . . . . . . . . . . . . . . $ 0.37 $ 0.29
Diluted . . . . . . . . . . . . . . . . . . . $ 0.36 $ 0.28
Common stock outstanding (in thousands):
Basic . . . . . . . . . . . . . . . . . . . . 24,345 24,062
Diluted . . . . . . . . . . . . . . . . . . . 24,913 24,327
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
---------------------------------------------
First Quarter
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $ in thousands except
per share amounts)
EBITDA: (1)
Net earnings. . . . . . . . . . . . . . . . . $ 9,020 $ 6,868
Interest expense. . . . . . . . . . . . . . . 3,374 3,454
Provision for taxes on income . . . . . . . . 5,529 4,209
Depreciation and other amortization . . . . . 13,797 12,232
--------------- ---------------
$ 31,720 $ 26,763
=============== ===============
EBITDA per share - diluted (1). . . . . . . . . $ 1.27 $ 1.10
Capital expenditures. . . . . . . . . . . . . . $ 24,047 $ 18,752
Acquisition of businesses and marine equipment. $ 1,110 $ 36,316
March 31,
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $ in thousands)
Long-term debt, including current portion . . . $ 250,409 $ 295,517
Stockholders' equity. . . . . . . . . . . . . . $ 381,674 $ 330,582
Debt to capitalization ratio. . . . . . . . . . 39.6% 47.2%
4
MARINE TRANSPORTATION STATEMENTS OF EARNINGS
--------------------------------------------
First Quarter
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $ in thousands)
Marine transportation revenues . . . . . . . . $ 135,493 $ 125,065
--------------- ---------------
Costs and expenses:
Costs of sales and operating expenses. . . . 86,966 83,171
Selling, general and administrative. . . . . 15,504 13,783
Taxes, other than on income. . . . . . . . . 3,133 2,902
Depreciation and other amortization. . . . . 13,016 11,505
--------------- ---------------
118,619 111,361
--------------- ---------------
Operating income . . . . . . . . . . . . . $ 16,874 $ 13,704
=============== ===============
Operating margins. . . . . . . . . . . . . 12.5 % 11.0 %
=============== ===============
DIESEL ENGINE SERVICES STATEMENTS OF EARNINGS
---------------------------------------------
First Quarter
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $ in thousands)
Diesel engine services revenues. . . . . . . . $ 21,822 $ 23,135
--------------- ---------------
Costs and expenses:
Costs of sales and operating expenses. . . . 15,934 17,629
Selling, general and administrative. . . . . 3,034 2,754
Taxes, other than on income. . . . . . . . . 82 83
Depreciation and other amortization. . . . . 333 252
--------------- ---------------
19,383 20,718
--------------- ---------------
Operating income . . . . . . . . . . . . . $ 2,439 $ 2,417
=============== ===============
Operating margins. . . . . . . . . . . . . 11.2 % 10.4 %
=============== ===============
OTHER COSTS AND EXPENSES
------------------------
First Quarter
--------------------------------
2004 2003
--------------- ---------------
(unaudited, $in thousands)
General corporate expenses . . . . . . . . . . $ 1,939 $ 1,616
=============== ===============
Loss on disposition of assets. . . . . . . . . $ 2 $ 7
=============== ===============
5
MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS
----------------------------------------------
First Quarter
--------------
2004 2003
------ ------
Ton Miles (in millions) (2) . . . . . . . 3,735 3,455
Revenue/Ton Mile (cents/tm) (3) . . . . . 3.6 3.6
Towboats operated (average) (4) . . . . . 233 229
Delay Days (5). . . . . . . . . . . . . . 2,359 2,583
Average cost per gallon of fuel consumed. $ .99 $ 1.03
Tank barges:
Active. . . . . . . . . . . . . . . . . 874 905
Inactive. . . . . . . . . . . . . . . . 71 62
Barrel Capacities (in millions):
Active. . . . . . . . . . . . . . . . . 16.0 16.5
Inactive. . . . . . . . . . . . . . . . 1.3 1.1
<FN>
(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
2004 revenues of $135,493,000 divided by 3,735,000,000 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.
# # #
6