(Mark One)
|
||||
þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|||
For the fiscal year ended December 31, 2005 | ||||
or | ||||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|||
For the transition period from to |
Nevada
|
74-1884980 | |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
|
55 Waugh Drive, Suite 1000
Houston, Texas (Address of principal executive offices) |
77007
(Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock $.10 Par Value Per Share
|
New York Stock Exchange |
Item 1. | Business |
| Audit Committee Charter | |
| Compensation Committee Charter | |
| Governance Committee Charter | |
| Business Ethics Guidelines | |
| Corporate Governance Guidelines |
1
2005 | 2004 | 2003 | ||||||||||||
Revenues from unaffiliated customers:
|
||||||||||||||
Marine transportation
|
$ | 685,999 | $ | 588,828 | $ | 530,411 | ||||||||
Diesel engine services
|
109,723 | 86,491 | 83,063 | |||||||||||
Consolidated revenues
|
$ | 795,722 | $ | 675,319 | $ | 613,474 | ||||||||
Operating profits:
|
||||||||||||||
Marine transportation
|
$ | 119,291 | $ | 92,535 | $ | 77,274 | ||||||||
Diesel engine services
|
12,874 | 8,388 | 7,890 | |||||||||||
General corporate expenses
|
(10,021 | ) | (7,565 | ) | (6,351 | ) | ||||||||
Gain (loss) on disposition of assets
|
2,360 | (299 | ) | (99 | ) | |||||||||
124,504 | 93,059 | 78,714 | ||||||||||||
Equity in earnings of marine affiliates
|
1,933 | 1,002 | 2,932 | |||||||||||
Loss on debt retirement
|
(1,144 | ) | | | ||||||||||
Other expense
|
(319 | ) | (347 | ) | (119 | ) | ||||||||
Minority interests
|
(1,069 | ) | (542 | ) | (902 | ) | ||||||||
Interest expense
|
(12,783 | ) | (13,263 | ) | (14,628 | ) | ||||||||
Earnings before taxes on income
|
$ | 111,122 | $ | 79,909 | $ | 65,997 | ||||||||
Identifiable assets:
|
||||||||||||||
Marine transportation
|
$ | 928,408 | $ | 834,157 | $ | 779,121 | ||||||||
Diesel engine services
|
55,113 | 47,158 | 40,152 | |||||||||||
983,521 | 881,315 | 819,273 | ||||||||||||
Investment in marine affiliates
|
11,866 | 12,205 | 9,162 | |||||||||||
General corporate assets
|
30,161 | 11,155 | 26,526 | |||||||||||
Consolidated assets
|
$ | 1,025,548 | $ | 904,675 | $ | 854,961 | ||||||||
2
Number | Average age | Barrel | |||||||||||||
Class of equipment | in class | (in years) | capacities | ||||||||||||
Inland tank barges:
|
|||||||||||||||
Active:
|
|||||||||||||||
Regular double hull:
|
|||||||||||||||
20,000 barrels and under
|
424 | 25.9 | 4,951,000 | ||||||||||||
Over 20,000 barrels
|
368 | 18.5 | 9,976,000 | ||||||||||||
Specialty double hull
|
83 | 30.7 | 1,250,000 | ||||||||||||
Single hull:
|
|||||||||||||||
Double hull single bottom
|
10 | 28.4 | 211,000 | ||||||||||||
20,000 barrels and under
|
5 | 39.7 | 88,000 | ||||||||||||
Over 20,000 barrels
|
7 | 32.6 | 205,000 | ||||||||||||
Total active inland tank barges
|
897 | 23.5 | 16,681,000 | ||||||||||||
Inactive
|
67 | 34.3 | 1,262,000 | ||||||||||||
Inland towing vessels:
|
|||||||||||||||
Inland towboats:
|
|||||||||||||||
Active (owned and chartered):
|
|||||||||||||||
Less than 800 horsepower
|
1 | 37.1 | |||||||||||||
800 to 1300 horsepower
|
114 | 29.1 | |||||||||||||
1400 to 1900 horsepower
|
83 | 28.2 | |||||||||||||
2000 to 2400 horsepower
|
6 | 31.4 | |||||||||||||
2500 to 3200 horsepower
|
15 | 32.5 | |||||||||||||
3300 to 4900 horsepower
|
11 | 31.8 | |||||||||||||
Greater than 5200 horsepower
|
2 | 33.1 | |||||||||||||
Spot charters (chartered trip to trip)
|
7 | | |||||||||||||
Total active inland towboats
|
239 | 29.3 | |||||||||||||
Inactive
|
2 | 19.1 | |||||||||||||
Deadweight | ||||||||||||
Tonnage | ||||||||||||
Offshore dry-cargo barges
|
4 | 25.9 | 70,000 | |||||||||
Offshore tugboats
|
5 | 28.7 | ||||||||||
3
4
5
6
7
8
9
10
11
12
13
Year Ended December 31, | ||||||||||||||||||||||||
2005 | 2004 | 2003 | ||||||||||||||||||||||
Amounts | % | Amounts | % | Amounts | % | |||||||||||||||||||
Overhaul and repairs
|
$ | 64,149 | 58 | % | $ | 42,098 | 49 | % | $ | 38,045 | 46 | % | ||||||||||||
Direct parts sales
|
45,574 | 42 | 44,393 | 51 | 45,018 | 54 | ||||||||||||||||||
$ | 109,723 | 100 | % | $ | 86,491 | 100 | % | $ | 83,063 | 100 | % | |||||||||||||
14
15
16
17
18
Item 2. | Properties |
Item 3. | Legal Proceedings |
19
Item 4. | Submission of Matters to a Vote of Security Holders |
Name | Age | Positions and Offices | ||||
C. Berdon Lawrence
|
63 | Chairman of the Board of Directors | ||||
Joseph H. Pyne
|
58 | President, Director and Chief Executive Officer | ||||
Norman W. Nolen
|
63 | Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary | ||||
Steven P. Valerius
|
51 | President Kirby Inland Marine | ||||
Dorman L. Strahan
|
49 | President Kirby Engine Systems | ||||
Mark R. Buese
|
50 | Senior Vice President Administration | ||||
Jack M. Sims
|
63 | Vice President Human Resources | ||||
Howard G. Runser
|
55 | Vice President Information Technology | ||||
G. Stephen Holcomb
|
60 | Vice President Investor Relations and Assistant Secretary | ||||
Ronald A. Dragg
|
42 | Controller |
20
21
Item 5. | Market for Registrants Common Equity and Related Stockholder Matters |
Sales Price | |||||||||
High | Low | ||||||||
2006 | |||||||||
First Quarter (through March 6, 2006)
|
$ | 62.35 | $ | 50.26 | |||||
2005
|
|||||||||
First Quarter
|
45.57 | 39.76 | |||||||
Second Quarter
|
45.74 | 37.19 | |||||||
Third Quarter
|
49.68 | 44.11 | |||||||
Fourth Quarter
|
55.54 | 45.91 | |||||||
2004
|
|||||||||
First Quarter
|
36.54 | 30.19 | |||||||
Second Quarter
|
39.09 | 33.20 | |||||||
Third Quarter
|
40.38 | 33.65 | |||||||
Fourth Quarter
|
46.48 | 38.87 |
22
Item 6. | Selected Financial Data |
December 31, | ||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001* | ||||||||||||||||||
Revenues:
|
||||||||||||||||||||||
Marine transportation
|
$ | 685,999 | $ | 588,828 | $ | 530,411 | $ | 450,280 | $ | 481,283 | ||||||||||||
Diesel engine services
|
109,723 | 86,491 | 83,063 | 85,123 | 85,601 | |||||||||||||||||
$ | 795,722 | $ | 675,319 | $ | 613,474 | $ | 535,403 | $ | 566,884 | |||||||||||||
Net earnings
|
$ | 68,781 | $ | 49,544 | $ | 40,918 | $ | 27,446 | $ | 39,603 | ||||||||||||
Earnings per share of common stock:
|
||||||||||||||||||||||
Basic
|
$ | 2.74 | $ | 2.02 | $ | 1.69 | $ | 1.14 | $ | 1.65 | ||||||||||||
Diluted
|
$ | 2.67 | $ | 1.97 | $ | 1.67 | $ | 1.13 | $ | 1.63 | ||||||||||||
Weighted average shares outstanding:
|
||||||||||||||||||||||
Basic
|
25,112 | 24,505 | 24,153 | 24,061 | 24,027 | |||||||||||||||||
Diluted
|
25,781 | 25,157 | 24,506 | 24,394 | 24,270 |
December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001* | ||||||||||||||||
Property and equipment, net
|
$ | 642,381 | $ | 574,211 | $ | 536,512 | $ | 486,852 | $ | 466,239 | ||||||||||
Total assets
|
$ | 1,025,548 | $ | 904,675 | $ | 854,961 | $ | 791,758 | $ | 752,435 | ||||||||||
Long-term debt, including current portion
|
$ | 200,036 | $ | 218,740 | $ | 255,265 | $ | 266,001 | $ | 249,737 | ||||||||||
Stockholders equity
|
$ | 537,542 | $ | 435,235 | $ | 372,132 | $ | 323,311 | $ | 301,022 |
* | Comparability with other periods is affected by the amortization of goodwill of $6,253 in 2001. |
Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
23
2005 | ||||||||
Revenue | ||||||||
Markets Serviced | Distribution | Products Moved | Drivers | |||||
Petrochemicals
|
67% | Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Caustic Soda, Butadiene, Propylene | Housing, Consumer Goods, Autos, Clothing, Vehicle Usages | |||||
Black Oil Products
|
20% | Residual Oil, No. 6 Fuel Oil, Coker Feedstocks, Vacuum Gas, Asphalt, Boiler Fuel, Crude Oil, Ship Bunkers | Road Construction, Feedstock for Refineries, Fuel for Power Plants and Ships | |||||
Refined Petroleum Products
|
9% | Gasoline Blends, No. 2 Oil, Jet Fuel, Heating Oil | Vehicle Usage, Air Travel, Weather Conditions | |||||
Agricultural Chemicals
|
4% | Liquid Fertilizers, Chemical Feedstocks | Corn, Cotton, Wheat Production |
24
25
2005
Revenue
Markets Serviced
Distribution
Customers
61%
Inland River Carriers Dry and Liquid, Offshore
Towing Dry and Liquid, Offshore Oilfield
Services Drilling Rigs & Supply Boats,
Harbor Towing, Dredging, Great Lake Ore Carriers
22%
Standby Power Generation, Pumping Stations
17%
Passenger (Transit Systems), Class II, Shortline, Industrial
26
27
28
% Change | % Change | |||||||||||||||||||||
2004 to | 2003 to | |||||||||||||||||||||
2005 | 2004 | 2005 | 2003 | 2004 | ||||||||||||||||||
Marine transportation revenues
|
$ | 685,999 | $ | 588,828 | 17 | % | $ | 530,411 | 11 | % | ||||||||||||
Costs and expenses:
|
||||||||||||||||||||||
Costs of sales and operating expenses
|
433,155 | 365,590 | 18 | 332,600 | 10 | |||||||||||||||||
Selling, general and administrative
|
67,752 | 65,278 | 4 | 57,271 | 14 | |||||||||||||||||
Taxes, other than on income
|
11,327 | 13,349 | (15 | ) | 12,824 | 4 | ||||||||||||||||
Depreciation and amortization
|
54,474 | 52,076 | 5 | 50,442 | 3 | |||||||||||||||||
566,708 | 496,293 | 14 | 453,137 | 10 | ||||||||||||||||||
Operating income
|
$ | 119,291 | $ | 92,535 | 29 | % | $ | 77,274 | 20 | % | ||||||||||||
Operating margins
|
17.4 | % | 15.7 | % | 14.6 | % | ||||||||||||||||
Marine Transportation Revenues |
29
30
Marine Transportation Costs and Expenses |
Marine Transportation Operating Income and Operating Margins |
Marine Transportation Revenues |
31
Marine Transportation Costs and Expenses |
32
Marine Transportation Operating Income and Operating Margins |
% Change | % Change | |||||||||||||||||||||
2004 to | 2003 to | |||||||||||||||||||||
2005 | 2004 | 2005 | 2003 | 2004 | ||||||||||||||||||
Diesel engine services revenues
|
$ | 109,723 | $ | 86,491 | 27 | % | $ | 83,063 | 4 | % | ||||||||||||
Costs and expenses:
|
||||||||||||||||||||||
Costs of sales and operating expenses
|
82,095 | 64,723 | 27 | 62,266 | 4 | |||||||||||||||||
Selling, general and administrative
|
13,169 | 11,882 | 11 | 11,530 | 3 | |||||||||||||||||
Taxes, other than on income
|
411 | 335 | 23 | 332 | | |||||||||||||||||
Depreciation and amortization
|
1,174 | 1,163 | 1 | 1,045 | 11 | |||||||||||||||||
96,849 | 78,103 | 24 | 75,173 | 4 | ||||||||||||||||||
Operating income
|
$ | 12,874 | $ | 8,388 | 53 | % | $ | 7,890 | 6 | % | ||||||||||||
Operating margins
|
11.7 | % | 9.7 | % | 9.5 | % | ||||||||||||||||
Diesel Engine Services Costs and Expenses |
Diesel Engine Services Operating Income and Operating Margins |
33
Diesel Engine Services Revenues |
Diesel Engine Services Costs and Expenses |
Diesel Engine Services Operating Income and Operating Margins |
Gain (Loss) on Disposition of Assets |
34
% Change
% Change
2004 to
2003 to
2005
2004
2005
2003
2004
1,933
1,002
93
%
2,932
(66
)%
(1,144
)
N/A
N/A
(319
)
(347
)
(8
)%
(119
)
192
%
(1,069
)
(542
)
97
%
(902
)
(40
)%
(12,783
)
(13,263
)
(4
)%
(14,628
)
(9
)%
Equity in Earnings of Marine Affiliates |
Loss on Debt Retirement |
Interest Expense |
35
36
37
38
39
40
41
42
43
44
45
46
Balance Sheet
% Change
% Change
2004 to
2003 to
2005
2004
2005
2003
2004
$
186,276
$
139,650
33
%
$
131,779
6
%
642,381
574,211
12
536,512
7
11,866
12,205
(3
)
9,162
33
160,641
160,641
156,726
2
24,384
17,968
36
20,782
(14
)
$
1,025,548
$
904,675
13
%
$
854,961
6
%
$
139,821
$
104,390
34
%
$
98,868
6
%
200,032
217,436
(8
)
255,040
(15
)
126,755
123,330
3
106,134
16
21,398
24,284
(12
)
22,787
7
537,542
435,235
24
372,132
17
$
1,025,548
$
904,675
13
%
$
854,961
6
%
Table of Contents
Table of Contents
Retirement Plans
Table of Contents
Long-Term Financing
Table of Contents
Notional
Fixed
amount
Trade date
Effective date
Termination date
pay rate
Receive rate
$
100,000
February 2001
March 2001
March 2006
5.64%
One-month LIBOR
$
100,000
September 2003
March 2006
February 2013
5.45%
Three-month LIBOR
$
50,000
April 2004
April 2004
May 2009
4.00%
Three-month LIBOR
Table of Contents
Capital Expenditures
Table of Contents
Treasury Stock Purchases
Liquidity
Table of Contents
Table of Contents
Contractual Obligations
Payments Due By Period
Less Than
1-3
4-5
After
Total
1 Year
Years
Years
5 Years
$
200,036
$
4
$
10
$
11
$
200,011
33,299
10,717
9,142
4,109
9,331
50,643
50,643
$
283,978
$
61,364
$
9,152
$
4,120
$
209,342
Accounting Standards
Table of Contents
2005
2004
2003
$
68,781
$
49,544
$
40,918
(1,603
)
(1,765
)
(1,833
)
$
67,178
$
47,779
$
39,085
$
2.74
$
2.02
$
1.69
$
2.68
$
1.95
$
1.62
$
2.67
$
1.97
$
1.67
$
2.61
$
1.90
$
1.59
Table of Contents
Item 7A.
Quantitative and Qualitative Disclosures about Market
Risk
Notional
Fixed
amount
Trade date
Effective date
Termination date
pay rate
Receive rate
$
100,000
February 2001
March 2001
March 2006
5.64%
One-month LIBOR
$
100,000
September 2003
March 2006
February 2013
5.45%
Three-month LIBOR
$
50,000
April 2004
April 2004
May 2009
4.00%
Three-month LIBOR
Table of Contents
Item 8.
Financial Statements and Supplementary Data
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
47
Items 10 | Through 14. |
48
KPMG LLP |
49
50
KPMG LLP
Table of Contents
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
Table of Contents
2005
2004
2003
($ in thousands,
except per share amounts)
$
685,999
$
588,828
$
530,411
109,723
86,491
83,063
795,722
675,319
613,474
515,255
430,272
395,043
88,648
82,917
73,149
12,270
13,652
13,141
57,405
55,120
53,328
(2,360
)
299
99
671,218
582,260
534,760
124,504
93,059
78,714
1,933
1,002
2,932
(1,144
)
(319
)
(347
)
(119
)
(1,069
)
(542
)
(902
)
(12,783
)
(13,263
)
(14,628
)
111,122
79,909
65,997
(42,341
)
(30,365
)
(25,079
)
$
68,781
$
49,544
$
40,918
$
2.74
$
2.02
$
1.69
$
2.67
$
1.97
$
1.67
Table of Contents
2005
2004
2003
($ in thousands)
$
3,091
$
3,091
$
3,091
$
185,123
$
178,720
$
176,867
7,272
2,758
794
12,058
3,645
1,059
$
204,453
$
185,123
$
178,720
$
(5,672
)
$
(5,950
)
$
(8,062
)
(93
)
(29
)
(321
)
3,737
307
2,433
$
(2,028
)
$
(5,672
)
$
(5,950
)
$
(2,255
)
$
(1,003
)
$
(4,497
)
(1,913
)
(1,258
)
1,692
661
255
$
(5,060
)
$
(2,255
)
$
(1,003
)
$
360,119
$
310,575
$
269,657
68,781
49,544
40,918
$
428,900
$
360,119
$
310,575
$
(105,171
)
$
(113,301
)
$
(118,242
)
13,357
8,130
4,941
$
(91,814
)
$
(105,171
)
$
(113,301
)
$
68,781
$
49,544
$
40,918
3,644
278
2,112
$
72,425
$
49,822
$
43,030
Table of Contents
2005
2004
2003
($ in thousands)
$
68,781
$
49,544
$
40,918
57,405
55,120
53,328
(132
)
17,500
20,384
(2,360
)
299
99
587
131
1,077
1,144
1,692
661
255
971
1,574
1,550
(20,315
)
(20,694
)
(596
)
(3,541
)
138
1,557
(9,846
)
826
(3,428
)
14,404
15,542
(11,616
)
26,979
300
4,068
6,213
5,810
4,634
141,982
126,751
112,230
(122,283
)
(93,604
)
(72,356
)
(7,500
)
(10,174
)
(37,816
)
6,286
2,665
7,069
(804
)
(162
)
(124,301
)
(101,275
)
(103,103
)
(17,400
)
12,400
(260,400
)
200,000
250,000
(200,000
)
(50,000
)
(1,304
)
(225
)
(336
)
(822
)
(635
)
(660
)
19,054
9,549
4,901
(472
)
(28,911
)
(6,495
)
17,209
(3,435
)
2,632
629
4,064
1,432
$
17,838
$
629
$
4,064
$
11,693
$
12,747
$
13,435
$
28,069
$
(2,677
)
$
16,310
$
363
$
$
900
$
$
1,300
$
Table of Contents
(1)
Summary of Significant Accounting Policies
Accounting Policies
Table of Contents
(1)
Summary of Significant Accounting
Policies (Continued)
Table of Contents
(1)
Summary of Significant Accounting
Policies (Continued)
2005
2004
2003
$
68,781
$
49,544
$
40,918
(1,603
)
(1,765
)
(1,833
)
$
67,178
$
47,779
$
39,085
$
2.74
$
2.02
$
1.69
$
2.68
$
1.95
$
1.62
$
2.67
$
1.97
$
1.67
$
2.61
$
1.90
$
1.59
Table of Contents
(1)
Summary of Significant Accounting
Policies (Continued)
Accounting Standards
Table of Contents
(1)
Summary of Significant Accounting
Policies (Continued)
(2)
Acquisitions
Table of Contents
(2)
Acquisitions (Continued)
(3)
Derivative Instruments
Table of Contents
(3)
Derivative Instruments (Continued)
Notional
Fixed
amount
Trade date
Effective date
Termination date
pay rate
Receive rate
$
100,000
February 2001
March 2001
March 2006
5.64%
One-month LIBOR
$
100,000
September 2003
March 2006
February 2013
5.45%
Three-month LIBOR
$
50,000
April 2004
April 2004
May 2009
4.00%
Three-month LIBOR
(4)
Long-Term Debt
2005
2004
$
$
15,000
200,000
200,000
2,400
36
1,340
$
200,036
$
218,740
Table of Contents
(4)
Long-Term Debt (Continued)
$
4
5
5
5
6
200,011
$
200,036
Table of Contents
(4)
Long-Term Debt (Continued)
Outstanding
Interest
Available
Balance
Rate
Balance
$
$
250,000
34,000
7.77%
216,000
45,000
7.25%
171,000
79,000
171,000
50,000
7.05%
121,000
(34,000
)
121,000
95,000
121,000
(45,000
)
121,000
50,000
121,000
(50,000
)
121,000
$
121,000
Table of Contents
(4)
Long-Term Debt (Continued)
(5)
Taxes on Income
2005
2004
2003
$
111,122
$
79,909
$
65,997
$
40,702
$
11,895
$
3,731
(2,584
)
15,626
19,311
4,223
2,844
2,037
$
42,341
$
30,365
$
25,079
2005
2004
2003
35.0
%
35.0
%
35.0
%
2.5
2.3
2.0
.6
.7
1.0
38.1
%
38.0
%
38.0
%
Table of Contents
(5)
Taxes on Income (Continued)
2005
2004
2003
$
465
$
428
$
406
550
617
523
2,177
953
1,556
578
169
134
$
3,770
$
2,167
$
2,619
$
3,131
$
3,042
$
3,106
2,181
2,539
3,733
1,762
1,419
1,181
854
2,866
3,031
496
4,976
4,039
3,147
(496
)
12,904
13,905
14,198
(118,046
)
(120,233
)
(105,415
)
(10,707
)
(8,260
)
(6,387
)
(9,546
)
(7,764
)
(7,937
)
(1,360
)
(978
)
(593
)
(139,659
)
(137,235
)
(120,332
)
$
(126,755
)
$
(123,330
)
$
(106,134
)
Table of Contents
(6)
Leases
2005
2004
2003
$
8,868
$
9,308
$
9,327
64,805
56,313
42,707
4,087
4,175
3,951
$
77,760
$
69,796
$
55,985
*
All of the Companys towboat rental agreements provide the
Company with the option to terminate the agreements with notice
ranging from seven to 90 days.
$
10,717
5,838
3,304
2,215
1,894
9,331
$
33,299
(7)
Stock Award Plans
Table of Contents
(7)
Stock Award Plans (Continued)
Outstanding
Weighted
Non-Qualified or
Average
Nonincentive
Exercise
Stock Awards
Price
2,135,581
$
20.64
424,142
$
25.79
(327,494
)
$
18.52
(1,334
)
$
24.54
2,230,895
$
21.82
355,822
$
33.93
(582,478
)
$
20.57
(3,668
)
$
30.26
2,000,571
$
23.96
207,250
$
43.56
(1,306,047
)
$
21.86
(2,668
)
$
31.83
899,106
$
29.11
Options Outstanding
Options Exercisable
Weighted
Average
Remaining
Weighted
Weighted
Contractual
Average
Average
Number
Life in
Exercise
Number
Exercise
Range of Exercise Prices
Outstanding
Years
Price
Exercisable
Price
59,500
3.02
$
18.51
59,500
$
18.51
121,384
0.87
$
19.66
121,384
$
19.66
351,397
1.73
$
26.25
232,123
$
26.62
258,625
3.06
$
33.83
54,188
$
33.93
108,200
1.73
$
43.56
899,106
2.39
$
29.11
467,195
$
24.62
Table of Contents
(7)
Stock Award Plans (Continued)
Outstanding
Weighted
Non-Qualified or
Average
Nonincentive
Exercise
Stock Awards
Price
132,393
$
22.93
32,820
$
25.39
$
165,213
$
23.41
26,369
$
35.76
(16,013
)
$
18.78
175,569
$
25.50
29,825
$
40.56
(28,033
)
$
20.40
177,361
$
28.03
Options Outstanding
Options Exercisable
Weighted
Average
Remaining
Weighted
Weighted
Contractual
Average
Average
Number
Life in
Exercise
Number
Exercise
Range of Exercise Prices
Outstanding
Years
Price
Exercisable
Price
23,846
2.82
$
19.11
23,846
$
19.11
73,942
5.73
$
23.00
73,942
$
23.00
79,573
7.79
$
35.39
79,129
$
35.36
177,361
6.24
$
28.03
176,917
$
28.00
Table of Contents
(7)
Stock Award Plans (Continued)
(8)
Retirement Plans
Current Minimum, Target and
Asset Category
2005
2004
Maximum Allocation Policy
40
%
44
%
40% - 55% - 70%
33
%
36
%
20% - 30% - 50%
14
%
14
%
0% - 15% - 20%
13
%
6
%
0% - 0% - 10%
100
%
100
%
Table of Contents
(8)
Retirement Plans (Continued)
Table of Contents
(8)
Retirement Plans (Continued)
Postretirement Benefits
Pension Benefits
Other Than Pensions
2005
2004
2005
2004
$
85,924
$
74,151
$
8,405
$
9,409
4,606
4,110
351
317
5,152
4,733
468
477
9,571
4,966
1,001
(1,257
)
(2,256
)
(2,036
)
(394
)
(541
)
102,997
85,924
9,831
8,405
76,446
67,691
4,324
6,191
12,000
4,600
394
541
(2,256
)
(2,036
)
(394
)
(541
)
90,514
76,446
(12,483
)
(9,478
)
(9,831
)
(8,405
)
40,247
30,910
(802
)
(1,931
)
(490
)
(578
)
361
401
116
47
$
27,274
$
20,854
$
(10,156
)
$
(9,888
)
$
89,399
$
75,617
$
1,912
$
1,752
$
27,274
$
20,854
$
(10,156
)
$
(9,888
)
(714
)
(564
)
714
564
$
27,274
$
20,854
$
(10,156
)
$
(9,888
)
5.5
%
5.75
%
5.5
%
5.75
%
4.0
%
4.00
%
6.33
%
7.67
%
to 5.00
%
to 5.00
%
Table of Contents
(8)
Retirement Plans (Continued)
Postretirement Benefits
Pension Benefits
Other Than Pensions
2005
2004
2003
2005
2004
2003
$
4,606
$
4,110
$
2,978
$
351
$
317
$
310
5,152
4,733
4,246
468
477
548
(6,395
)
(5,825
)
(4,890
)
(89
)
(89
)
(89
)
40
39
39
2,306
2,277
1,733
(126
)
(124
)
(77
)
$
5,580
$
5,206
$
3,978
$
733
$
709
$
820
5.75
%
6.00
%
6.75
%
5.75
%
6.00
%
6.75
%
8.50
%
8.75
%
8.75
%
4.0
%
4.00
%
4.00
%
6.33
%*
7.67
%
9.00
%
*
Trend for 2005 was assumed to be 6.33%. Beginning in 2006, the
trend assumption was restarted at 10% in 2006 decreasing
1% per year to an ultimate of 5% in 2011.
$
2,818
3,169
3,466
3,690
4,016
25,567
Table of Contents
(8)
Retirement Plans (Continued)
$
594
607
592
582
608
3,530
(9)
Earnings Per Share of Common Stock
2005
2004
2003
$
68,781
$
49,544
$
40,918
25,112
24,505
24,153
669
652
353
25,781
25,157
24,506
$
2.74
$
2.02
$
1.69
$
2.67
$
1.97
$
1.67
Table of Contents
(10)
Quarterly Results (Unaudited)
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2005
2005
2005
2005
$
184,444
$
199,276
$
198,741
$
213,261
159,053
167,368
168,793
178,364
192
1,795
(24
)
397
25,583
33,703
29,924
35,294
(703
)
707
1,395
534
(1,144
)
(103
)
(133
)
(144
)
61
(213
)
(267
)
(299
)
(290
)
(3,146
)
(3,113
)
(2,997
)
(3,527
)
21,418
29,753
27,879
32,072
(8,139
)
(11,306
)
(10,594
)
(12,302
)
$
13,279
$
18,447
$
17,285
$
19,770
$
.53
$
.74
$
.69
$
.77
$
.52
$
.72
$
.67
$
.76
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2004
2004
2004
2004
$
157,315
$
170,876
$
173,389
$
173,739
139,941
145,611
147,434
148,975
(2
)
(196
)
(43
)
(58
)
17,372
25,069
25,912
24,706
822
494
(782
)
468
(91
)
(55
)
(144
)
(57
)
(180
)
4
(271
)
(95
)
(3,374
)
(3,290
)
(3,344
)
(3,255
)
14,549
22,222
21,371
21,767
(5,529
)
(8,444
)
(8,121
)
(8,271
)
$
9,020
$
13,778
$
13,250
$
13,496
$
.37
$
.56
$
.54
$
.55
$
.36
$
.55
$
.53
$
.53
Table of Contents
(11)
Contingencies and Commitments
Table of Contents
(11)
Contingencies and Commitments (Continued)
Table of Contents
(11)
Contingencies and Commitments (Continued)
(12)
Segment Data
Table of Contents
(12)
Segment Data (Continued)
2005
2004
2003
$
685,999
$
588,828
$
530,411
109,723
86,491
83,063
$
795,722
$
675,319
$
613,474
$
119,291
$
92,535
$
77,274
12,874
8,388
7,890
(21,043
)
(21,014
)
(19,167
)
$
111,122
$
79,909
$
65,997
$
928,408
$
834,157
$
779,121
55,113
47,158
40,152
42,027
23,360
35,688
$
1,025,548
$
904,675
$
854,961
$
54,474
$
52,076
$
50,442
1,174
1,163
1,045
1,757
1,881
1,841
$
57,405
$
55,120
$
53,328
$
119,857
$
91,069
$
69,713
1,272
1,110
479
1,154
1,425
2,164
$
122,283
$
93,604
$
72,356
Table of Contents
(12)
Segment Data (Continued)
2005
2004
2003
$
(10,021
)
$
(7,565
)
$
(6,351
)
(12,783
)
(13,263
)
(14,628
)
1,933
1,002
2,932
(1,144
)
2,360
(299
)
(99
)
(1,069
)
(542
)
(902
)
(319
)
(347
)
(119
)
$
(21,043
)
$
(21,014
)
$
(19,167
)
2005
2004
2003
$
30,161
$
11,155
$
26,526
11,866
12,205
9,162
$
42,027
$
23,360
$
35,688
(13)
Related Party Transactions
Table of Contents
(14)
Subsequent Event
Table of Contents
Item 15. | Exhibits and Financial Statement Schedules |
Exhibit | ||||||
Number | Description of Exhibit | |||||
3 | .1 | | Restated Articles of Incorporation of Kirby Exploration Company, Inc. (the Company), as amended (incorporated by reference to Exhibit 3.1 of the Registrants 1989 Registration Statement on Form S-3 (Reg. No. 33-30832)). | |||
3 | .2 | | Certificate of Amendment of Restated Articles of Incorporation of the Company filed with the Secretary of State of Nevada April 30, 1990 (incorporated by reference to Exhibit 3.2 of the Registrants Annual Report on Form 10-K for the year ended December 31, 1990). | |||
3 | .3 | | Bylaws of the Company, as amended (incorporated by reference to Exhibit 2 of the Registrants July 20, 2000 Registration Statement on Form 8A (Reg. No. 01-07615)). | |||
4 | .1 | | Indenture, dated as of December 2, 1994, between the Company and Texas Commerce Bank National Association, Trustee, (incorporated by reference to Exhibit 4.3 of the Registrants 1994 Registration Statement on Form S-3 (Reg. No. 33-56195)). | |||
4 | .2 | | Rights Agreement, dated as of July 18, 2000, between Kirby Corporation and Fleet National Bank, a national bank association, which includes the Form of Resolutions Establishing Designations, Preference and Rights of Series A Junior Participating Preferred Stock of Kirby Corporation, the form of Rights Certificate and the Summary of Rights (incorporated by reference to Exhibit 4.1 of the Registrants Current Report on Form 8-K dated July 18, 2000). | |||
4 | .3 | | Amendment No. 2 to Rights Agreement dated as of January 24, 2006 between Kirby Corporation and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.1 of the Registrations Current Report on Form 8-K dated January 24, 2006). | |||
4 | .4 | | Master Note Purchase Agreement dated as of February 15, 2003 among the Company and the Purchasers named therein, (incorporated by reference to Exhibit 4.3 of the Registrants Annual Report on Form 10-K for the year ended December 31, 2002). | |||
10 | .1 | | Indemnification Agreement, dated April 29, 1986, between the Company and each of its Directors and certain key employees (incorporated by reference to Exhibit 10.11 of the Registrants Annual Report on Form 10-K for the year ended December 31, 1986). |
81
Exhibit
Number
Description of Exhibit
10
.2
1989 Employee Stock Option Plan for the Company, as amended
(incorporated by reference to Exhibit 10.11 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 1989).
10
.3
1989 Director Stock Option Plan for the Company, as amended
(incorporated by reference to Exhibit 10.12 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 1989).
10
.4
Deferred Compensation Agreement dated August 12, 1985
between Dixie Carriers, Inc., and J. H. Pyne (incorporated by
reference to Exhibit 10.19 of the Registrants Annual
Report on Form 10-K for the year ended December 31,
1992).
10
.5
1994 Employee Stock Option Plan for Kirby Corporation
(incorporated by reference to Exhibit 10.21 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 1993).
10
.6
1994 Nonemployee Director Stock Option Plan for Kirby
Corporation (incorporated by reference to Exhibit 10.22 of
the Registrants Annual Report on Form 10-K for the
year ended December 31, 1993).
10
.7*
Deferred Compensation Plan for Key Employees.
10
.8
Amendment to 1989 Director Stock Option Plan for Kirby
Exploration Company, Inc. (incorporated by reference to
Exhibit 10.24 of the Registrants Annual Report on
Form 10-K for the year ended December 31, 1993).
10
.9
Distribution Agreement, dated December 2, 1994, by and
among Kirby Corporation and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Salomon Brothers Inc, and
Wertheim Schroder & Co. Incorporated (incorporated by
reference to Exhibit 1.1 of the Registrants Current
Report on Form 8-K dated December 9, 1994).
10
.10
1996 Employee Stock Option Plan for Kirby Corporation
(incorporated by reference to Exhibit 10.24 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 1996).
10
.11
Amendment No. 1 to the 1994 Employee Stock Option Plan for
Kirby Corporation (incorporated by reference to
Exhibit 10.25 of the Registrants Annual Report on
Form 10-K for the year ended December 31, 1996).
10
.12
Credit Agreement, dated September 19, 1997, among Kirby
Corporation, the Banks named therein, and Texas Commerce Bank
National Association as Agent and Funds Administrator
(incorporated by reference to Exhibit 10.0 of the
Registrants Quarterly Report on Form 10-Q for the
quarter ended September 30, 1997).
10
.13
First Amendment to Credit Agreement, dated January 30,
1998, among Kirby Corporation, the Banks named therein, and
Chase Bank of Texas, N.A. as Agent and Funds Administrator
(incorporated by reference to Exhibit B2 of the
Registrants Tender Offer Statement on Schedule 13E-4
filed with the Securities and Exchange Commission on
February 17, 1998).
10
.14
Second Amendment to Credit Agreement, dated November 30,
1998, among Kirby Corporation, the Banks named therein, and
Chase Bank of Texas, N.A. as Agent and Funds Administrator
(incorporated by reference to Exhibit 10.22 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 1998).
10
.15
2001 Employee Stock Option Plan for Kirby Corporation
(incorporated by reference to Exhibit 10.23 of the
Registrants Annual Report on Form 10-K for the year
ended December 31, 2000).
10
.16
Third Amendment to Credit Agreement, dated November 5,
2001, among Kirby Corporation, the Banks named therein, and The
Chase Manhattan Bank as Agent and Funds Administrator
(incorporated by reference to Exhibit 10.1 of the
Registrants Quarterly Report on Form 10-Q for the
quarter ended September 30, 2001).
10
.17
Nonemployee Director Compensation Program (incorporated by
reference to Exhibit 10.1 of Registrants Current
Report on Form 8-K dated March 2, 2005).
82
Exhibit
Number
Description of Exhibit
10
.18
2002 Stock and Incentive Plan (incorporated by reference to
Exhibit 4.4 of the Registrants Registration Statement
on Form S-8 filed on October 28, 2002).
10
.19
Fifth Amendment to Credit Agreement, dated December 9,
2003, among Kirby Corporation, the Banks named therein, and
JPMorgan Chase Bank as Agent and Funds Administrator,
(incorporated by reference to Exhibit 10.20 of
Registrants Annual Report on Form 10-K for the year
ended December 31, 2003).
10
.20
Annual Incentive Plan Guidelines (incorporated by reference to
Exhibit 10.1 of Registrants Current Report on
Form 8-K dated January 23, 2006).
10
.21
2000 Nonemployee Director Stock Option Plan (incorporated by
reference to Exhibit 4.4 of the Registrants
Registration Statement on Form S-8 filed on April 28,
2004).
10
.22
2005 Stock and Incentive Plan (incorporated by reference to
Exhibit 10.1 of the Registrants Current Report on
Form 8-K filed with the Commission on April 29, 2005,
File No. 001-07615).
10
.23
Form of Nonincentive Stock Option Agreement (incorporated by
reference to Exhibit 10.2 to the Registrants Current
Report on Form 8-K filed with the Commission on
April 29, 2005, File No. 001-07615).
10
.24
Form of Incentive Stock Option Agreement (incorporated by
reference to Exhibit 10.3 to the Registrants Current
Report on Form 8-K filed with the Commission on
April 29, 2005, File No. 001-07615).
10
.25
Form of Restricted Stock Agreement (incorporated by reference to
Exhibit 10.4 to the Registrants Current Report on
Form 8-K filed with the Commission on April 29, 2005,
File No. 001-07615).
21
.1*
Principal Subsidiaries of the Registrant.
23
.1*
Independent Registered Public Accountants Consent.
31
.1*
Certification of Chief Executive Officer Pursuant to
Rule 13a-14(a).
31
.2*
Certification of Chief Financial Officer Pursuant to
Rule 13a-14(a).
32*
Certification Pursuant to 13 U.S.C. Section 1350 (As
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002).
* | Filed herewith |
| Management contract, compensatory plan or arrangement. |
83
Kirby Corporation | |
(Registrant) |
By: | /s/ Norman W. Nolen |
|
|
Norman W. Nolen | |
Executive Vice President, Treasurer | |
and Chief Financial Officer |
Signature | Capacity | Date | ||||
/s/
C. Berdon Lawrence
C. Berdon Lawrence |
Chairman of the Board and Director of the Company | March 6, 2006 | ||||
/s/
Joseph H. Pyne
Joseph H. Pyne |
President, Director of the Company and Principal Executive Officer | March 6, 2006 | ||||
/s/
Norman W. Nolen
Norman W. Nolen |
Executive Vice President, Treasurer, Assistant Secretary of the Company and Principal Financial Officer | March 6, 2006 | ||||
/s/
Ronald A. Dragg
Ronald A. Dragg |
Controller of the Company | March 6, 2006 | ||||
/s/
C. Sean Day
C. Sean Day |
Director of the Company | March 6, 2006 | ||||
/s/
Bob G. Gower
Bob G. Gower |
Director of the Company | March 6, 2006 | ||||
/s/
Walter E. Johnson
Walter E. Johnson |
Director of the Company | March 6, 2006 | ||||
/s/
William M.
Lamont, Jr.
William M. Lamont, Jr. |
Director of the Company | March 6, 2006 | ||||
/s/
George A.
Peterkin, Jr.
George A. Peterkin, Jr. |
Director of the Company | March 6, 2006 | ||||
/s/
Robert G.
Stone, Jr.
Robert G. Stone, Jr. |
Director of the Company | March 6, 2006 | ||||
/s/
Richard C. Webb
Richard C. Webb |
Director of the Company | March 6, 2006 |
84
Exhibit | ||||||
Number | Description of Exhibit | |||||
10 | .7* | | Deferred Compensation Plan for Key Employees. | |||
21 | .1* | | Principal Subsidiaries of the Registrant. | |||
23 | .1* | | Independent Registered Public Accountants Consent. | |||
31 | .1* | | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a). | |||
31 | .2* | | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a). | |||
32* | | Certification Pursuant to Rule 13a-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002. |
* | Filed herewith |
| Management contract, compensatory plan or arrangement. |
85
KIRBY CORPORATION
|
||||
By: | ||||
Its: | ||||
Domicile of | ||
Incorporation | ||
KIRBY
CORPORATION PARENT AND REGISTRANT
|
Nevada | |
SUBSIDIARIES OF THE PARENT AND REGISTRANT
|
||
Kirby Corporate Services, LLC
|
Delaware | |
KIM Holdings, Inc. (1)
|
Delaware | |
Kirby Terminals, Inc. (1)
|
Texas | |
Sabine Transportation Company (1)
|
Delaware | |
AFRAM Carriers, Inc. (1)
|
Delaware | |
Kirby Engine Systems, Inc. (1)
|
Delaware | |
Kirby Tankships, Inc. (1)
|
Delaware | |
Dixie Offshore Transportation Company (1)
|
Delaware | |
Mariner Reinsurance Company Limited
|
Bermuda | |
CONTROLLED CORPORATIONS
|
||
KIM Partners, LLC (Subsidiary of KIM Holdings, Inc.) (1)
|
Louisiana | |
Kirby Inland Marine, LP (KIM Holdings, Inc. 1% General Partner, KIM Partners, LLC 99%
Limited Partner) (1)
|
Delaware | |
Dixie Carriers, Inc. (subsidiary of Kirby Inland Marine, LP) (1)
|
Texas | |
Marine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc.) (1)
|
Louisiana | |
Rail Systems, Inc. (subsidiary of Kirby Engine Systems, Inc. ) (1)
|
Delaware | |
Engine Systems, Inc. (subsidiary of Kirby Engine Systems, Inc. ) (1)
|
Delaware | |
Osprey Line,
L.L.C.
(66
2
/
3
%)
|
Texas | |
Marine
Highways, LLC (47%)(1)
|
Delaware | |
Matagorda
Terminals, Ltd. (Kirby Inland Marine, LP 50% General Partner, Kirby
Terminals, Inc. 50% Limited Partner)(1)
|
Texas |
(1) | Included in the consolidated financial statements. |
| Dated March 6, 2006, with respect to the consolidated balance sheets of Kirby Corporation as of December 31, 2005 and 2004, and the related consolidated statements of earnings, stockholders equity and cash flows for each of the years in the three-years in the three-year period ended December 31, 2005, and | ||
| Dated March 6, 2006, with respect to managements assessment of the effectiveness of internal control over financial reporting as of December 31, 2005 and the effectiveness of internal control over financial reporting as of December 31, 2005. |
|
KPMG LLP |
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; | |
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) Evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and | |
d) Disclosed in this annual report any change in the Companys internal control over financial reporting that occurred during the Companys most recent fiscal quarter (the Companys fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and | |
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ Joseph H. Pyne | |
|
|
Joseph H. Pyne | |
President and Chief Executive | |
Officer |
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; | |
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) Evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and | |
d) Disclosed in this annual report any change in the Companys internal control over financial reporting that occurred during the Companys most recent fiscal quarter (the Companys fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and | |
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ Norman W. Nolen | |
|
|
Norman W. Nolen | |
Executive Vice President, | |
Treasurer and Chief Financial Officer |
/s/ Joseph H. Pyne | |
|
|
Joseph H. Pyne | |
President and Chief Executive Officer | |
/s/ Norman W. Nolen | |
|
|
Norman W. Nolen | |
Executive Vice President, Treasurer | |
And Chief Financial Officer |