Kirby Corporation Announces Record First Quarter Results

- Earnings per share were a first quarter record of $0.28 versus $0.25 a

year ago

- EBITDA per share reaches $1.19 compared with $1.13 in last year's

quarter

- Debt to capitalization reduced to 50.4 %

- 2001 year earnings estimate of $1.45 to $1.55 per share reconfirmed



Apr 19, 2001, 01:00 ET from Kirby Corporation

    HOUSTON, April 19 /PRNewswire/ -- Kirby Corporation (NYSE:   KEX) ("Kirby")
 today reported record net earnings for the 2001 first quarter of
 $6,755,000, or $0.28 per share, compared with $6,067,000, or $0.25 per share,
 for the 2000 first quarter.  Record first quarter revenues were $133.1 million
 compared with $126.5 million for last year's first quarter.
     Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Our
 record results for the 2001 first quarter are at the top of our publicly
 announced earnings range of $0.24 to $0.28 per share.  The favorable results
 reflect unseasonably strong refined products and fertilizer markets.  These
 results were offset in part by a declining chemical and petrochemical market,
 and by more severe winter weather and high water conditions than we
 experienced during last year's first quarter.  The first quarter is
 historically our lowest earnings quarter due to inefficiencies and delays
 caused by winter weather and water conditions."
     The first quarter 2001 results reflect only a nominal amount of earnings
 contribution from the long-term leasing in February 2001 of 94 inland tank
 barges from a subsidiary of The Dow Chemical Company ("Dow").  During a
 transition period, estimated to be 90 to 180 days, the leased barges are being
 employed by Kirby exclusively in Dow's Union Carbide service prior to being
 integrated into the Kirby fleet under the terms of Kirby's long-term contract
 with Dow.
     Marine transportation revenue gains in the 2001 first quarter were due to
 increased volumes in the refined products and fertilizer markets and the
 94 leased inland tank barges from Dow.  Since the 2000 third quarter, chemical
 and petrochemical volumes have flattened, and in some cases volumes have
 actually declined, the result of the slowdown in the U.S. economy and
 continued economic uncertainty.  In addition, many of Kirby's inland
 transportation customers have experienced a reduced demand for their products.
     The diesel engine services segment reported higher revenue and operating
 income during the 2001 first quarter compared with the first quarter of 2000,
 primarily due to the acquisitions in the 2000 fourth quarter of two service
 companies.  Diesel engine services benefited from a strong East Coast field
 service market, a favorable Great Lakes market and a strong Gulf Coast
 drilling and offshore supply vessel market.  The rail market and West Coast
 fishing market continued to experience weakness.
     During the 2001 first quarter, Kirby continued to reduce its debt to
 capitalization ratio.  As of December 31, 1999, following Kirby's acquisition
 of Hollywood Marine, Inc., the debt to capitalization ratio was 57.3%, and was
 reduced to 52.8% as of December 31, 2000 and to 50.4% as of March 31, 2001.
     In the press release dated January 31, 2001, Kirby stated that, assuming
 volumes for 2001 are similar to those in the second half of 2000, earnings per
 share were likely to be in the $1.45 to $1.55 per share range.  Based on the
 first quarter 2001 results of $0.28 per share, and an anticipated second
 quarter earnings per share range of $0.38 to $0.42, the $1.45 to $1.55
 earnings per share projection for the 2001 year remains obtainable.
     Kirby has scheduled a conference call at 10:00 a.m. (CDT) today, April 19,
 2001, to discuss the 2001 first quarter results and the 2001 second quarter
 and year outlook.  The conference call number is 888-220-3092 for domestic
 callers and 312-470-0079 for international callers.  The pass code for the
 conference call is "Kirby" and the leader's name is Steve Holcomb.  An audio
 playback will be available starting at approximately 12:00 p.m. (CDT) on
 April 19 through 5:00 p.m. (CDT) on Friday, April 27, 2001, by dialing
 800-839-5108 for domestic callers and 402-998-1207 for international callers.
     The first quarter results conference call will also be available online at
 www.streetfusion.com.  The web cast will begin at 10:00 a.m. (CDT), with a
 replay available beginning shortly after completion of the live call.  The
 replay will be available through Friday, May 18, 2001.
     Kirby Corporation, based in Houston, Texas, operates 871 inland tank
 barges, with 15.6 million barrels of capacity, and 215 towing vessels,
 transporting chemicals, petrochemicals, refined petroleum products, black oil
 and agricultural chemicals throughout the United States' inland waterway
 system.  Through its diesel engine services segment, Kirby provides
 after-market service for large medium-speed diesel engines used in marine,
 power generation, industrial, nuclear and rail applications.
     Statements contained in this press release with respect to the future are
 forward-looking statements.  These statements reflect management's reasonable
 judgement 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 the 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, 2000, filed with the Securities and Exchange Commission.
 
                              -- Tables Follow --
 
      A summary of the results for the first quarter is set forth below.
 
 
                        Condensed Statements of Earnings
                                                         First Quarter
                                                      2001            2000
                                             (unaudited, $ in thousands except
                                                     per share amounts,
                                                    consolidated basis)
     Revenues by reportable segment:
      Marine transportation                          $111,951       $107,502
      Diesel engine services                           21,177         18,954
 
                                                     $133,128       $126,456
 
     Operating profits by reportable segment:
      Marine transportation                           $15,750        $15,030
      Diesel engine services                            2,229          2,037
                                                       17,979         17,067
 
      Equity in earnings of marine affiliates             716            837
      Other expense                                      (460)          (107)
      General corporate expenses                       (1,641)        (1,651)
      Interest expense                                 (5,144)        (5,863)
 
       Earnings before taxes on income                 11,450         10,283
      Provision for taxes on income                    (4,695)        (4,216)
 
       Net earnings                                    $6,755         $6,067
 
     Earnings per share of common stock:
      Basic                                             $0.28          $0.25
      Diluted                                           $0.28          $0.25
 
     Common stock outstanding:
      Basic                                            23,987         24,493
      Diluted                                          24,095         24,594
 
 
                            Supplemental Information
 
                                                       First Quarter
                                                  2001              2000
                                             (unaudited, $ in thousands except
                                             per share and per gallon amounts,
                                             condensed and consolidated basis)
 
     Operating margins:
      Marine transportation                        14.1 %           14.0 %
      Diesel engine services                       10.5 %           10.7 %
 
     EBITDA:
      Earnings before taxes on income             $11,450          $10,283
      Interest expense                              5,144            5,863
      Depreciation and amortization                12,093           11,761
                                                  $28,687          $27,907
 
     EBITDA per share -- diluted                    $1.19            $1.13
 
     Long-term debt, including current portion   $275,188         $310,523
 
     Stockholders' equity                        $270,775         $246,167
 
     Debt to capitalization ratio                  50.4 %           55.8 %
 
     Capital expenditures                         $15,272          $13,311
 
     Average cost per gallon of fuel consumed       $0.84            $0.79
 
 

SOURCE Kirby Corporation
    HOUSTON, April 19 /PRNewswire/ -- Kirby Corporation (NYSE:   KEX) ("Kirby")
 today reported record net earnings for the 2001 first quarter of
 $6,755,000, or $0.28 per share, compared with $6,067,000, or $0.25 per share,
 for the 2000 first quarter.  Record first quarter revenues were $133.1 million
 compared with $126.5 million for last year's first quarter.
     Joe Pyne, Kirby's President and Chief Executive Officer, commented, "Our
 record results for the 2001 first quarter are at the top of our publicly
 announced earnings range of $0.24 to $0.28 per share.  The favorable results
 reflect unseasonably strong refined products and fertilizer markets.  These
 results were offset in part by a declining chemical and petrochemical market,
 and by more severe winter weather and high water conditions than we
 experienced during last year's first quarter.  The first quarter is
 historically our lowest earnings quarter due to inefficiencies and delays
 caused by winter weather and water conditions."
     The first quarter 2001 results reflect only a nominal amount of earnings
 contribution from the long-term leasing in February 2001 of 94 inland tank
 barges from a subsidiary of The Dow Chemical Company ("Dow").  During a
 transition period, estimated to be 90 to 180 days, the leased barges are being
 employed by Kirby exclusively in Dow's Union Carbide service prior to being
 integrated into the Kirby fleet under the terms of Kirby's long-term contract
 with Dow.
     Marine transportation revenue gains in the 2001 first quarter were due to
 increased volumes in the refined products and fertilizer markets and the
 94 leased inland tank barges from Dow.  Since the 2000 third quarter, chemical
 and petrochemical volumes have flattened, and in some cases volumes have
 actually declined, the result of the slowdown in the U.S. economy and
 continued economic uncertainty.  In addition, many of Kirby's inland
 transportation customers have experienced a reduced demand for their products.
     The diesel engine services segment reported higher revenue and operating
 income during the 2001 first quarter compared with the first quarter of 2000,
 primarily due to the acquisitions in the 2000 fourth quarter of two service
 companies.  Diesel engine services benefited from a strong East Coast field
 service market, a favorable Great Lakes market and a strong Gulf Coast
 drilling and offshore supply vessel market.  The rail market and West Coast
 fishing market continued to experience weakness.
     During the 2001 first quarter, Kirby continued to reduce its debt to
 capitalization ratio.  As of December 31, 1999, following Kirby's acquisition
 of Hollywood Marine, Inc., the debt to capitalization ratio was 57.3%, and was
 reduced to 52.8% as of December 31, 2000 and to 50.4% as of March 31, 2001.
     In the press release dated January 31, 2001, Kirby stated that, assuming
 volumes for 2001 are similar to those in the second half of 2000, earnings per
 share were likely to be in the $1.45 to $1.55 per share range.  Based on the
 first quarter 2001 results of $0.28 per share, and an anticipated second
 quarter earnings per share range of $0.38 to $0.42, the $1.45 to $1.55
 earnings per share projection for the 2001 year remains obtainable.
     Kirby has scheduled a conference call at 10:00 a.m. (CDT) today, April 19,
 2001, to discuss the 2001 first quarter results and the 2001 second quarter
 and year outlook.  The conference call number is 888-220-3092 for domestic
 callers and 312-470-0079 for international callers.  The pass code for the
 conference call is "Kirby" and the leader's name is Steve Holcomb.  An audio
 playback will be available starting at approximately 12:00 p.m. (CDT) on
 April 19 through 5:00 p.m. (CDT) on Friday, April 27, 2001, by dialing
 800-839-5108 for domestic callers and 402-998-1207 for international callers.
     The first quarter results conference call will also be available online at
 www.streetfusion.com.  The web cast will begin at 10:00 a.m. (CDT), with a
 replay available beginning shortly after completion of the live call.  The
 replay will be available through Friday, May 18, 2001.
     Kirby Corporation, based in Houston, Texas, operates 871 inland tank
 barges, with 15.6 million barrels of capacity, and 215 towing vessels,
 transporting chemicals, petrochemicals, refined petroleum products, black oil
 and agricultural chemicals throughout the United States' inland waterway
 system.  Through its diesel engine services segment, Kirby provides
 after-market service for large medium-speed diesel engines used in marine,
 power generation, industrial, nuclear and rail applications.
     Statements contained in this press release with respect to the future are
 forward-looking statements.  These statements reflect management's reasonable
 judgement 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 the 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, 2000, filed with the Securities and Exchange Commission.
 
                              -- Tables Follow --
 
      A summary of the results for the first quarter is set forth below.
 
 
                        Condensed Statements of Earnings
                                                         First Quarter
                                                      2001            2000
                                             (unaudited, $ in thousands except
                                                     per share amounts,
                                                    consolidated basis)
     Revenues by reportable segment:
      Marine transportation                          $111,951       $107,502
      Diesel engine services                           21,177         18,954
 
                                                     $133,128       $126,456
 
     Operating profits by reportable segment:
      Marine transportation                           $15,750        $15,030
      Diesel engine services                            2,229          2,037
                                                       17,979         17,067
 
      Equity in earnings of marine affiliates             716            837
      Other expense                                      (460)          (107)
      General corporate expenses                       (1,641)        (1,651)
      Interest expense                                 (5,144)        (5,863)
 
       Earnings before taxes on income                 11,450         10,283
      Provision for taxes on income                    (4,695)        (4,216)
 
       Net earnings                                    $6,755         $6,067
 
     Earnings per share of common stock:
      Basic                                             $0.28          $0.25
      Diluted                                           $0.28          $0.25
 
     Common stock outstanding:
      Basic                                            23,987         24,493
      Diluted                                          24,095         24,594
 
 
                            Supplemental Information
 
                                                       First Quarter
                                                  2001              2000
                                             (unaudited, $ in thousands except
                                             per share and per gallon amounts,
                                             condensed and consolidated basis)
 
     Operating margins:
      Marine transportation                        14.1 %           14.0 %
      Diesel engine services                       10.5 %           10.7 %
 
     EBITDA:
      Earnings before taxes on income             $11,450          $10,283
      Interest expense                              5,144            5,863
      Depreciation and amortization                12,093           11,761
                                                  $28,687          $27,907
 
     EBITDA per share -- diluted                    $1.19            $1.13
 
     Long-term debt, including current portion   $275,188         $310,523
 
     Stockholders' equity                        $270,775         $246,167
 
     Debt to capitalization ratio                  50.4 %           55.8 %
 
     Capital expenditures                         $15,272          $13,311
 
     Average cost per gallon of fuel consumed       $0.84            $0.79
 
 SOURCE  Kirby Corporation