Executives
G. Stephen Holcomb – Vice President-Investor Relations
Joseph H. Pyne – Chairman and Chief Executive Officer
David W. Grzebinski – Executive Vice President and Chief Financial Officer
Greg R. Binion – President and Chief Operating Officer
Analysts
Jonathan B. Chappell – Evercore Partners
Jack Atkins – Stephens Inc.
Kevin Sterling – BB&T Capital Markets
Ken Hoexter – Bank of America/Merrill Lynch
Jimmy Gibert – Iberia Capital Partners
Stephen O’Hara – Sidoti and Company, LLC
David Beard – Iberia Capital Partners
Kirby Corporation (KEX) Agreement to Acquire Penn Maritime Conference Call November 28, 2012 8:30 AM ET
Operator
Welcome to the Kirby Corporation announces Agreement to Acquire Penn Maritime Conference Call. My name is Christine and I’ll be your operator for today’s conference. At this time, all participants are in a listen-only mode. Later we will conduct question-and-answer session. Please note today’s conference is being recorded.
I will now turn the call over to Steve Holcomb. Sir, you may begin.
G. Stephen Holcomb
Thank you for joining us this morning. with me today is Joe Pyne, Kirby’s Chairman and Chief Executive Officer and David Grzebinski, our Chief Financial Officer.
During this conference call, we may refer to certain non-GAAP or adjusted financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is available on our website at kirbycorp.com in the Investor Relations section under non-GAAP financial data.
Statements contained in this conference call 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 risk and uncertainties. Our actual results could differ materially from those anticipated as a result of various factors. A list of these risk factors can be found in Kirby’s Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission.
I will now turn the call over to Joe.
Joseph H. Pyne
Thank you, Steve and good morning. we’re very pleased to announce our agreement with Penn Maritime. the Penn has excellent reputation in the coastal tank barge industry and operates fleet that well maintained offshore tank barges and trucks. Most of Penn’s revenue is earned from long-term contracts with approximately 80% of Penn’s barges under term contracts, 95% of those contracts were time charters.
The Penn’s term contracts are with the major oil companies and refining customers. The quality of Penn’s customer base is a reflection of Penn’s owner, Bill Waterman, strong leadership of his family company, which has consistently produced a strong track record for customer service and safety and is highly respected in our industry. Because its fleet primarily operates in the black oil markets, Penn will add product diversity to Kirby’s coastal operation and is in markets that have attractive growth opportunities.
The acquisition will also allow us to expand many of our customer relationships, as Kirby already services nearly all of Penn’s customers through our inland business. The total value of this transaction is approximately $295 million before post-closing adjustments and transaction fees, and will consist of approximately $152 million of cash, 500,000 shares of Kirby common stock and $115 million for the retirement of Penn’s debt.
The cash portion of the acquisition, which is approximately $267 million, would be financed through a combination of borrowings under Kirby’s revolving credit facility and the private placement of senior unsecured fixed notes. We priced the new senior notes in mid-November and what we consider attractive prices, 2.79% for the seven-year note and 3.34% for the 10-year maturities and will take the funds and two drawings, the first drawing of $300 million will be used from the Penn acquisition. The second drawing of $200 million will be used to replace our existing $200 million of senior notes that will expire February of next year.
In addition to facilitating our acquisition of Penn, the new notes will also improve our capital structure by extending our weighted average maturity with low fixed rate debt. Penn’s fleet is comprised of 18 heated double-hulled tank barges and 16 tugboats. volumes across most of Penn’s product markets have been growing in 2012, and utilization is currently in the mid-80% range.
This fleet produced revenues an EBITDA for the last 12 months ending September 30, 2012 of approximately $122 million and $38 million respectively, approximately 60% of Penn’s trailing 12-month revenues came from the transportation of 6 oil refinery feedstocks and liquid asphalt and crude oil.
We think that we will continue to see improved demand in these markets as the economy improves. as the movement of refinery feedstocks and 6 oil typically mirrors refinery utilization. As the development of North American shale formation continues, it will provide increased supply of crude oil, which will need to be transported to refineries. and therefore, refinery feedstocks will also improve.
Penn has the largest U.S. fleet asphalt barges. majority of the asphalt is used in highway and housing construction and maintenance. These infrastructure markets have seen investment declines over the past years with the overall decline in the economy. Our U.S. asphalt demand is now projected to grow in the mid-to-high single digits over the next 10 years. The Penn units also transport crude in condensate from emerging shale plays principally along the Gulf Coast to refineries for further processing.
We expect to close this acquisition in mid-to-late December with essentially no benefit to our 2012 earnings. However, we will incur some one-time transaction fees that will be reflected in our 2012 fourth quarter financial statement. For 2013, we expect to purchase to be approximately $0.12 to $0.18 accretive to our earnings per share. Additionally, we believe that over time we can achieve some additional synergies, which will allow Penn to be even more accretive to our bottom line results.
Before I take questions, I also want to take this opportunity to provide an update of the impact of the low water conditions on the Mississippi River as well as Hurricane Sandy. I’d like to reiterate that approximately two thirds of our inland transportation revenue comes from movements along the Gulf Intracoastal Waterway and one third from movements on the Mississippi River System, which is the area in which we operate, which is impacted by low water.
That said, conditions on the Upper Mississippi River, that portion between Cairo and St. Louis as well as the Illinois River have been challenging with only intermittent rainfall in November.
At this time, we are light-loading barges operating in those areas and that we have been light-loading these barges really for the past four or five months. Without extensive rainfall or other forms of remediation, further graph restrictions are likely, and it’s still possible that the area between Cairo and St. Louis could be unnavigable for a portion of the winter. We estimate that approximately 8% of our inland marine transportation revenue is generated in this affected area, with about 60% of this revenue under term time charters.
Kirby along with other waterway operators continues to work with the U.S. Army Corp of Engineers to explore options for maintaining sufficient water levels for barge navigation. We currently plan to continue to operate on affected sections of the river, but with lower graphs.
We’re estimating that the fourth quarter impact of low water will be in the $0.02 to $0.03 per share range. In addition to the low water conditions that we just described, we incurred some expenses and lost revenue totaling about $0.02 per share in our offshore operations during the fourth quarter as a result of Hurricane Sandy.
As a result of low water conditions, Hurricane Sandy and the additional expenses will incur with respect to our Penn acquisition. We are currently tracking towards the mid-to-low part of our fourth quarter earnings guidance range. We’ll continue to monitor conditions on the Mississippi River closely and if something changes we’ll update the situation if it is material.
Operator, we’re now ready to open the floor to questions.
Question-and-Answer Session
Operator
Thank you. (Operator Instructions) The first question comes from Jon Chappell from Evercore Partners. Please go ahead.
Jonathan B. Chappell – Evercore Partners
Thank you, good morning guys.
Joseph H. Pyne
Good morning, Jon.
Jonathan B. Chappell – Evercore Partners
Joe, my first question is on the process of this acquisition. Was this an aftermarket deal that you negotiated privately? was this fleet that had been marketed? And then as part of that question, what was the due diligence period on the Penn fleet?
Joseph H. Pyne
Jon, this was a private negotiation as with the most of the acquisitions that we’ve made I think in the close to 50 acquisitions that Kirby has made in the last 30 years, all but three or four of them were without third-party assistance. With respect to the discussions we started discussing the potential acquisition of Penn, almost a year ago, I would say that the discussions intensified over the summer due diligence began late summer, early fall and really continued until we announced it last night.
Jonathan B. Chappell – Evercore Partners
Okay, thank you. And then as my follow-up, as I think about modeling this, can you give any insight as to breakdown kind of ton miles versus revenue per ton mile of this business, and then also maybe the margins vis-à-vis the K-Sea margins or the inland barge business margin?
Joseph H. Pyne
Yeah. Well, with respect to, I’ll let David answer the margin question, but with respect to ton miles, we don’t at least at this point publish ton miles for the offshore part of our operations.
David W. Grzebinski
Yeah. Jon, we are in terms of forecasting margins, it’s a little tough to do right now, because we haven’t done the purchase price allocation where you look at intangibles, and how much goes to fixed assets, and how much is tied up in goodwill. we’re still in that process, and it will take sometime to do that. I can tell you historically on a trailing basis you saw the revenue is about $122 million; the EBITDA was about $38 million that give you a feel that it’s roughly 30% EBITDA margins. and as we roll it into Kirby, there will be some absorption cost, if you will that will incur in 2013, but after we get through that, we should be able to improve on those margins as we consolidate our operations now they are probably doing a little better than we have been traditionally in Comm. But Comm is doing better and better every month and every quarter.
Greg R. Binion
Just generally comment on this market, we are seeing utilization continue to improve and reach from which is very encouraging and we anticipate that trend is going to continue through 2013 as this market moves the balance partly driven by additional volumes and also by capacity continuing to exit the market.
Jonathan B. Chappell – Evercore Partners
Thanks Greg. Thanks Joe. Thanks David.
Greg R. Binion
Thanks Jon.
Operator
Our next question comes from Jack Atkins from Stephens Incorporated. Please go ahead.
Jack Atkins – Stephens Inc.
Great, thanks so much of your time guys. Just a couple of questions here first Joe, I was wondering if may be you could comment on the pro forma geographic and product mix breakdown of your coastal barging business now that you have Penn in there as well as Allied, K-Sea and Seaboats, just sort of curious about where you guys are both geographically, but also what how the product mix looks now?
Joseph H. Pyne
Geographically Penn is essentially a Gulf Coast, East Coast operator and there are in the black oil market, so there is going to be Asphalt, 6 oil, black oil feedstocks and crude oil. And we, let’s say with respect to the trailing 12 months revenues about 60% is 6 oil and refinery feedstocks, 25% asphalt and 15% crude oil, more recently a little more of their capacity is from crude oil. Now with respect to Allied, Allied is essentially chemicals and K-Sea is clean products with increasingly a little more crude oil. In terms of the percentage of those markets with respect to the whole operation, David will comment on that.
David W. Grzebinski
Yeah. just looking at barrel capacity is kind of hard to give you revenue numbers right now, but Penn will be about, will give our barrel capacity about 28%, 25% to 30% in black oil, and then the chemical side would be, hang on one sec, let me just do a quick calculation about 12% and the balance then would be refined products.
Jack Atkins – Stephens Inc.
Okay, great. That’s really helpful. And then David, when you think about the your synergies that you guys are assuming in the accretion for the transaction, could you maybe quantify what level of synergies you’re assuming there and just so we can sort of quantify that?
David W. Grzebinski
Yeah. almost 9 in 2013, I think it will take us a while to get them, but 2014 will be, you should see some more. we haven’t quantified those in terms of 2014 yet, but in terms of the accretion for next year, there’s almost none?
Jack Atkins – Stephens Inc.
Okay, great. And then last question from me, I know you guys didn’t specifically break out the transaction fees and the impact that can have on the fourth quarter, but it sounds like you’re beginning to sort of break that into the low-to-mid point level of the guidance range you were talking about. So could you maybe help us understand exactly from an EPS impact, the negative impact from the transaction expenses for the quarter?
David W. Grzebinski
Yeah. Just to think about the quarter, Joe said there was about $0.02 to $0.03 low water impact in the quarter, $0.02 from Sandy, and maybe it’s probably, it’s just legal fees and some other small fees, there’s no arrangement fees related to Penn, but it’s probably $0.01 or a little less in terms of transaction fees that yeah, maybe $0.005, maybe it ramps up to a $0.01, but it’s unfortunate, we’re still getting legal bills. So…
Jack Atkins – Stephens Inc.
Okay, great. thank you so much for your time.
Operator
The next question comes from Kevin Sterling from BB&T Capital Markets. Please go ahead.
Kevin Sterling – BB&T Capital Markets
Good morning, gentlemen.
Joseph H. Pyne
Good morning.
David W. Grzebinski
Good morning.
Kevin Sterling – BB&T Capital Markets
Joe, had Penn gotten to the point where maybe they did not have the balance sheet to grow. So my question is, can you grow with their customers by providing some of your capacity, and on the other hand, some are Penn’s barges, could you utilize those in your inland trade?
Joseph H. Pyne
No. With respect to the inland business, really no. There are larger barges that would be very difficult to work in the inland infrastructure. I think Penn was a healthy company financially, it was prudently run, I think that they could have continued to grow, I think certainly, under Kirby, maybe now the only investment-grade rated company in the shipping business, certainly in the United States maybe even in the world. So our balance sheet is certainly capable of further growth. in terms of allocating coastal capacity to different markets, Penn is in the black oil business, but some of that equipment that can be cleaned and put to work in cleaned service as well as the K-Sea fleet can be put in the black oil service. We’ve in fact recently put some of that fleet into crude oil transportation.
So you can move it around. I would say that we’re really positioned about where we want to be, I mean we have a presence in the clean market, the chemical market and the black oil market. We should have good visibility into all those markets, and we could allocate equipment and capital as we see the need for growth in those respected markets.
Kevin Sterling – BB&T Capital Markets
Thank you, Joe. And David, as we think about your balance sheet going forward, obviously, you’re taking advantage of the low interest rate environment by issuing some long-term debt at very, very attractive rates. How much do you have left on your revolver for maybe future M&A deals?
Joseph H. Pyne
We’ve got about approximately $140 million drawn on the revolver right now and it’s capacity of 325, but this puts us close to 40% debt to total cap. Theoretically we’ve got a little more capacity, I think unless it’s really compelling in near-term, we’re going to focus on some debt pay down here and using our free cash flow to be leveled a bit. But theoretically, we’ve got a little more capacity, we could get up to maybe 50 and still stay investment grade and as you know that’s very important to us, because we’d like to investment counter-cyclically.
Kevin Sterling – BB&T Capital Markets
Right, right. Okay, thank you so much for your time and congratulations on another nice acquisition.
Joseph H. Pyne
Thanks.
Operator
The next question comes from Ken Hoexter from Merrill Lynch. Please go ahead.
Ken Hoexter – Bank of America/Merrill Lynch
Great, good morning. Just two questions, well let me start with, I guess an easier one. Joe can you run through a kind of diligence (inaudible) so we know if we’re going to have to, I guess pull these in and make any other additional capital investments as you did after a while with K-Sea or are these kind of up to your quality standards?
Joseph H. Pyne
Yeah. Thank you for that easy question, Ken. Yeah. we think it’s the Penn fleet has been well maintained, the level of due diligence was again significantly more than we’re allowed in the K-Sea acquisition. so we don’t anticipate any surprises.
David W. Grzebinski
Ken, I would just add that the fleets, it’s relatively young, the age using initial bill dates was 13.5, but three of those older barges were rebuilt. so if you use rebuild dates, the average age is around eight years. so it’s not only, has it been well maintained, it’s a relatively young fleet.
Ken Hoexter – Bank of America/Merrill Lynch
Great, I appreciate that insight. My follow-up would be on, these are divergent businesses now with Allied and K-Sea in the offshore marine business. just looking ahead and you’ve talked about synergies out in 2014. can you talk a bit about how do you use those synergies, the benefit it seems like on the inland barge was that you can show up, because you’ve got the scale on the inland business, you can show up with different types of capacity to the customers and now that you’ve done the different types of end markets and different customers, is that now you need to go into each one of those to gain to build the scale. I just want to understand how you get the synergies through the different types of offshore businesses you’ve been acquiring? Thanks.
Joseph H. Pyne
Well, Ken, actually I think you do have the scale now. what’s a little different about this business and the inland business is that at least our canal operation, we leverage our power probably better than anybody in the business, and we have less capability in the offshore business, but if you look at the markets that we’re in, we’re well positioned in the black oil chemicals and refined products. and the market share is about what we have in the inland business, and in the inland business we’re in all those markets. We’re in black oil refined products and chemicals. so we’re about where we want to be, and I think that over time, we will squeeze out additional synergies, we can continue to cross-sell with respect to our inland customers, and I think we can fine-tune our cost structure, so that we really have a business that is operating very efficiently in that coastal market.
Ken Hoexter – Bank of America/Merrill Lynch
So do you see the synergies more in that cross-selling into the inland or is it with refining amongst the offshore marine businesses?
Joseph H. Pyne
Ken, when we talk about cross-selling, we’re really talking about selling to existing customers. So you have an inland customer that has a coastal requirement, you have the capacity to service that requirement, that’s really what we’re talking about with respect to the cross-selling. and what it does is, it allows you to really service the total requirement of the customer, often we’re talking to the same person at the customer for both inland and coastal. So you have a more complete picture of what it needs and we have a diverse fleet that should be able to accommodate it. That’s really what we’re referring to when we talk about cross-selling.
David W. Grzebinski
A part of it is flexibility for the customer too. we’ve had recently a Gulf Coast customer, large Gulf Coast customer where we were able to package both inland equipment and a coastwise large barge and enabled to give them some flexibility to meet their needs depending on how they shipped around. So it’s about those kind of, it’s hard to call those synergies, but it allows us to better service them, gives them more flexibility, helps them drive their cost down, but it’s all about increasing the customer service level.
Ken Hoexter – Bank of America/Merrill Lynch
Great, I appreciate the insight and thoughts. Thanks.
Operator
The next question comes from Jimmy Gibert from Iberia Capital Partners. Please go ahead.
Jimmy Gibert – Iberia Capital Partners
Hey guys, good morning, it’s a nice acquisition. Congratulations.
Joseph H. Pyne
Thank you.
Jimmy Gibert – Iberia Capital Partners
Well, talking about getting back to the low water on the Upper Mississippi, just do you have any comments or any thoughts on what kind if any crude shortages that might create for Gulf of Mexico refineries with crude flowing from I guess the Bakken and maybe even Canada down to the Gulf of Mexico or to the East Coast?
Joseph H. Pyne
Jimmy, I don’t think it will have any effect on the East Coast, because those volumes are either Gulf Coast volumes moved up coast and large coastal vessels or the rail. With respect to crude oil loadings out of St. Louis west and south, there are some. But I think that customer base is very, very sophisticated, has a variety of options with respect to their crude oil, and I think we’ll work around it, I don’t see the volume of crude oil to move down the river really having an effect on Gulf Coast refineries, (inaudible) a little more crude, but I don’t think would be short of it.
Jimmy Gibert – Iberia Capital Partners
Okay. And then also back in 88, can the low water conditions then get so extreme that these sections of the river north of St. Louis were actually closed or was it just a light-load drought situation?
Joseph H. Pyne
Yeah. We’ve not seen water levels at these levels, since I had been on the business; it goes back into the ‘70s. In ‘88, you had periodic closures of principally the main stem of the river. we did have problems in the same area with these rock formations, but the water levels really never dropped to what is anticipated here. the Missouri river in 1988 was a lot healthier than it is today. And it also began to rain about this time. So we had relief from just weather patterns. The issue in this particular sector is some hard rock that is on the bottom of the river that you can’t dredge through, most of the other sectors of the river that you can create draft by dredging. here you can’t create anymore draft, it’s the water level that controls the draft. The way you resolve it is either through more weather or removing the rock and the rock needs to be blasted, to be removed, and the industries that Kirby included were very active working with the Corps of Engineer, Congress, and the Administration.
Looking at several solutions from adding more water to actually removing the rock through blasting, adding more water is probably the most immediate fix, blasting is a little longer term and to settle that we’re not going to wait for somebody to fix it, we’re putting it place or our plans to continue to operate in lower water conditions. looking at shallow draft power, looking at light-loading barges that we’re continuing to service our customer base, and we’re working very closely with those customers with respect to those that need service principally on the Illinois River that’s where most of this cargo is going.
Jimmy Gibert – Iberia Capital Partners
Okay. Well, thanks a lot guys for taking my questions.
Operator
The next question comes from Steve O’Hara from Sidoti and Company. Please go ahead.
Stephen O’Hara – Sidoti and Company, LLC
Hi, good morning.
Joseph H. Pyne
Good morning.
Stephen O’Hara – Sidoti and Company, LLC
I don’t know if you’d touched on it yet. but I mean in terms of Penn’s revenue, you talked about the trailing 12 months of the last couple of years their revenue, what your operating margins are, and then finally, can you refresh me on what the debt that you’re paying down in 2013 in terms of (inaudible) on that and maybe Penn’s weighted average interest rates that you’re paying?
Joseph H. Pyne
Yeah, we’ve got some of that David you address that it was, what were Penn’s revenues, what were there EBITDA, operating margins…
David W. Grzebinski
Sure, yeah.
Joseph H. Pyne
And then I miss the part on the debt?
David W. Grzebinski
I’m sorry Stephen we could barely hear you, I think I have just a bit, we commented earlier that the revenue was about trailing 12 months is $122 million, EBITDA was $38 million, the markets are improving for them, so utilization continues to go up in the coastwise business and with that should be pricing, so hopefully revenues will and margins will improve going forward for the entire coastwise business. Not sure, if that answered your question, in terms of getting specific operating margins we still have to go through our purchase price allocation and get depreciation and amortization nailed down before you can get too specific on them. We’ll get specific when we give full year guidance for 2013 in January.
In terms of debt pay down prior to this acquisition EBITDA next year for 2013 would have been north of $500 million and CapEx we haven’t nailed it down yet, but would been on the order of $180 million to $200 million maybe a little more, but so that should give us a pretty good free cash flow that we could use it for debt repayment obviously cash flow will increase with this acquisition and the Allied acquisition, and the numbers should be a little better than that than I just outlined. Hopefully that answered your question, Steve we had a hard time hearing the latter part of your question.
Stephen O'Hara – Sidoti and Company, LLC
Yeah, I’m sorry. Hopefully you can hear me now better, what was the weighted average straight on the Penn’s debt and then also the debt that you’re paying down in 2013, what’s the interest rate on that as well?
David W. Grzebinski
Penn’s debt they were a private company, I’m not sure that matters much, we are retiring all their debt, and we’re not inheriting the debt. We are replacing it with the debt that we just issued, which you can see was the 10 year tranche was about 330. We have a mixture of floating rate debt and fixed rate debt now. Our fixed rate debt will average just above 3, 3.2 call it through 2013 our floating rate debt is LIBOR plus 150. So you can get the average obviously we won’t paydown the fixed rate debt, we’ll paydown the LIBOR based debt first and then we have a term loan that’s also LIBOR base there. I don’t know if that answered your question.
Stephen O'Hara – Sidoti and Company, LLC
Yeah, now that’s fine. I mean I guess it’s safe to say that Penn’s debt is – the rate on Penn’s debt has to be above what you guys are able to get?
David W. Grzebinski
Yeah, we are an investment grade credit. They are very good credit, but it’s difference in size really.
Stephen O'Hara – Sidoti and Company, LLC
Sure, of course. Okay, thank you.
Operator
The next question comes from David Beard from Iberia. Please go ahead.
David Beard – Iberia Capital Partners
Good morning, gentlemen.
Joseph H. Pyne
Good morning.
David W. Grzebinski
Good morning.
David Beard – Iberia Capital Partners
A lot my questions have been asked and answered. But could you give us a sense of what CapEx needs are required by Penn going forward and maybe what their fleet utilization is?
David W. Grzebinski
Yeah. the CapEx, it’s going to be fairly minimal, I mean they’ll have their normal drydock periods as their fleets go in and out of regulatory drydocks. there will be small CapEx. We haven’t finalized that yet, but it shouldn’t be overly significant. and then in terms of utilization, as Joe commented that was in the mid-80s, but again, the whole coastwise sector is tightening up and utilizations are improving. So it looks pretty positive going forward.
David Beard – Iberia Capital Partners
All right. And then just to step back a second, and look at financing and cash flow in balance sheet, because I often get questions of where you guys need to sell equity, because I can’t remember the last time you did sell equity. but you’ve outlined 2013 having pretty significant cash flow and we expect that to pick up in 2014. so you can almost pay through this acquisition with free cash flow. It doesn’t seem to me that you need to raise any additional equity capital. what are your thoughts there?
Joseph H. Pyne
Yeah. I agree, we wouldn’t anticipate raising equity capital. We issued a small amount of equity for this transaction. but as you point out, the free cash flow going forward should be pretty robust, and as we’ve discussed in prior calls, our capital spending in general will be going down. We’ve had a big year this year, next year will be lower. and then 2014, our capital spending will be even lower than that, because we can complete it essentially our replacement cycle spending on the inland fleet. So to your point, free cash flow should be increasing. so that there will not be a need to issue equity.
David Beard – Iberia Capital Partners
Great, I appreciate the color, and congratulations on the acquisition.
Joseph H. Pyne
Thank you.
Operator
The next question comes from Jack Atkins from Stephens Incorporated. Please go ahead.
Jack Atkins – Stephens Inc.
Guys, my questions have already been asked and answered. thanks.
Joseph H. Pyne
Thanks, Jack.
Operator
There are no additional questions at this time. Please go ahead with any final remarks.
G. Stephen Holcomb
We appreciate your interest in Kirby and participating in our call. if you have any additional questions, please give me a call. My direct dial number is 713-435-1135, and we wish you a good day.
Operator
That concludes the Kirby Corporation announces Agreement to Acquire Penn Maritime Conference Call. Thank you for your participation. you may disconnect at this time.
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