UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2021

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 1-7615

KIRBY CORPORATION

(Exact name of registrant as specified in its charter)

Nevada		74-1884980
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

55 Waugh Drive, Suite 1000 Houston, TX		77007
(Address of principal executive offices)		(Zip Code)

(713) 435-1000

(Registrant’s telephone number, including area code)

No Change

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	KEX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of May 6, 2021, 60,105,000 shares of the Registrant’s $0.10 par value per share common stock were outstanding.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED BALANCE SHEETS

(Unaudited)

	March 31, 2021			December 31, 2020
	($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	52,333		$	80,338
Accounts receivable:
Trade – less allowance for doubtful accounts		347,275			315,283
Other		171,749			284,899
Inventories – net		326,475			309,675
Prepaid expenses and other current assets		60,685			57,776
Total current assets		958,517			1,047,971

Property and equipment		5,585,574			5,615,400
Accumulated depreciation		(1,704,301	)		(1,698,330	)
Property and equipment – net		3,881,273			3,917,070

Operating lease right-of-use assets		172,198			174,317
Goodwill		657,800			657,800
Other intangibles, net		66,646			68,979
Other assets		51,652			58,037
Total assets	$	5,788,086		$	5,924,174

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank notes payable	$	434		$	40
Income taxes payable		489			474
Accounts payable		175,890			162,507
Accrued liabilities		198,487			224,855
Current portion of operating lease liabilities		32,722			32,750
Deferred revenues		45,421			45,406
Total current liabilities		453,443			466,032

Long-term debt, net – less current portion		1,348,904			1,468,546
Deferred income taxes		606,561			606,844
Operating lease liabilities – less current portion		161,133			163,496
Other long-term liabilities		129,301			131,703
Total long-term liabilities		2,245,899			2,370,589

Contingencies and commitments		—			—

Equity:
Kirby stockholders’ equity:
Common stock, $0.10 par value per share. Authorized 120,000,000 shares, issued 65,472,000 shares		6,547			6,547
Additional paid-in capital		846,259			844,979
Accumulated other comprehensive income – net		(61,204	)		(61,452	)
Retained earnings		2,590,018			2,593,393
Treasury stock – at cost, 5,384,000 shares at March 31, 2021 and 5,434,000 at December 31, 2020		(296,353	)		(299,161	)
Total Kirby stockholders’ equity		3,085,267			3,084,306
Noncontrolling interests		3,477			3,247
Total equity		3,088,744			3,087,553
Total liabilities and equity	$	5,788,086		$	5,924,174

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF EARNINGS

(Unaudited)

	Three Months Ended March 31,
	2021			2020
	($ in thousands, except per share amounts)
Revenues:
Marine transportation	$	300,951		$	403,257
Distribution and services		195,899			240,669
Total revenues		496,850			643,926

Costs and expenses:
Costs of sales and operating expenses		363,040			453,568
Selling, general and administrative		69,629			72,080
Taxes, other than on income		8,260			11,406
Depreciation and amortization		54,890			55,786
Impairments and other charges		—			561,274
Gain on disposition of assets		(2,133	)		(492	)
Total costs and expenses		493,686			1,153,622

Operating income (loss)		3,164			(509,696	)
Other income		3,791			2,723
Interest expense		(10,966	)		(12,799	)

Loss before taxes on income		(4,011	)		(519,772	)
Benefit for taxes on income		891			172,809

Net loss		(3,120	)		(346,963	)
Less: Net earnings attributable to noncontrolling interests		(255	)		(278	)

Net loss attributable to Kirby	$	(3,375	)	$	(347,241	)

Net loss per share attributable to Kirby common stockholders:
Basic	$	(0.06	)	$	(5.80	)
Diluted	$	(0.06	)	$	(5.80	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,
	2021			2020
	($ in thousands)

Net loss	$	(3,120	)	$	(346,963	)
Other comprehensive income (loss), net of taxes:
Pension and postretirement benefits		745			82
Foreign currency translation adjustments		(497	)		(1,274	)
Total other comprehensive income (loss), net of taxes		248			(1,192	)

Total comprehensive loss, net of taxes		(2,872	)		(348,155	)
Net earnings attributable to noncontrolling interests		(255	)		(278	)

Comprehensive loss attributable to Kirby	$	(3,127	)	$	(348,433	)

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2021			2020
	($ in thousands)
Cash flows from operating activities:
Net loss	$	(3,120	)	$	(346,963	)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation and amortization		54,890			55,786
Benefit for deferred income taxes		(533	)		(35,242	)
Impairments and other charges		—			561,274
Amortization of unearned share-based compensation		5,722			5,331
Amortization of major maintenance costs		8,360			7,103
Other		(1,138	)		112
Increase (decrease) in cash flows resulting from changes in operating assets and liabilities, net		38,377			(175,900	)
Net cash provided by operating activities		102,558			71,501

Cash flows from investing activities:
Capital expenditures		(14,052	)		(49,225	)
Acquisitions of businesses and marine equipment		—			(60,422	)
Proceeds from disposition of assets		4,754			3,993
Net cash used in investing activities		(9,298	)		(105,654	)

Cash flows from financing activities:
Borrowings (payments) on bank credit facilities, net		(119,606	)		485,001
Payments on long-term debt		—			(150,000	)
Proceeds from exercise of stock options		411			353
Payments related to tax withholding for share-based compensation		(2,045	)		(3,165	)
Return of investment to noncontrolling interest		(25	)		(202	)
Net cash provided by (used in) financing activities		(121,265	)		331,987
Increase (decrease) in cash and cash equivalents		(28,005	)		297,834

Cash and cash equivalents, beginning of year		80,338			24,737
Cash and cash equivalents, end of period	$	52,333		$	322,571

Supplemental disclosures of cash flow information:
Cash paid (received) during the period:
Interest paid	$	18,732		$	21,734
Income taxes refunded	$	(117,659	)	$	(160	)
Operating cash outflow from operating leases	$	10,688		$	9,738
Non-cash investing activity:
Capital expenditures included in accounts payable	$	(7,207	)	$	(2,707	)
Right-of-use assets obtained in exchange for lease obligations	$	6,219		$	4,677

See accompanying notes to condensed financial statements.

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

Common Stock

Additional

Paid-in-

Accumulated

Other

Comprehensive

Retained

Treasury Stock

Noncontrolling

Amount

Capital

Income, Net

Earnings

Amount

Interests

Total

(in thousands)

Balance at December 31, 2020

SEC Form 10-Q filed by Kirby Corporation