Kirby Corporation (NYSE:KEX) Q2 2019 Earnings Conference Call - Final Transcript

Jul 25, 2019 • 08:30 am ET

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Kirby Corporation (NYSE:KEX) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
David W. Grzebinski

year-over-year. But the pricing is as you know, Jack, is very high incremental margins, right? I mean it's in the high 70%, 80%, just pricing when you get that. So the only offsets really are kind of the operations cost and pricing, it's just -- it almost falls straight to the bottom line. But let us do some work, maybe Eric can get back to you on some -- better thoughts on incremental?

Executive
William G. Harvey

I wasn't really thinking year-over-year, Jack, but -- so that's a different perspective. I think on the SG&A side, I know what went down year-over-year, but we tend to focus more on discrete cost elements than overall but it's a good question.

Analyst
Jack Atkins

Okay. That's helpful, Bill and David. Thank you and then just the last one for me. I would be curious to get your take, David. I know you talked a little about M&A on the D&S side, but what's your appetite for M&A on the inland side of the house? I know that there is at least one of your larger competitors that still are under a lot of pressure financially. I'm just being curious to get your take on -- you guys have done a number of larger deals here over the last several years. Do you still have an appetite for further consolidation in the inland market, if an opportunity or two were to become available in the next 12 to 18 months?

Executive
David W. Grzebinski

Short answer is yes. I mean you know us. We like inland assets. It's probably when we do acquisitions, it's probably the easiest one for us to integrate. So we're always looking, always interested. I will say this, our debts, as Bill said, 32.4% debt to total cap, that's a little higher than we'd like. We are paying down debt rapidly and we'll continue to pay it down until we get an opportunity. But if we had a big opportunity or an opportunity in the near term, there probably have to be some equity involved.

As you know, Jack, we covered our investment-grade rating, but we also love buying inland assets. So it'd be a balance, but as you know, it's also very hard to predict acquisitions and we are always disciplined about how we go about valuing them. So it's a long way of saying, of course, we'd look at further consolidation for us. It just makes sense for us, but our balance sheet would be very thoughtful about how we deploy that.

Analyst
Jack Atkins

Okay. Totally understand. Thanks again for the time this morning guys.

Executive
David W. Grzebinski

Thank you.

Executive
Eric S. Holcomb

All right. Thanks, Jack, and thank you everyone for participating in our call today. If you have any additional questions or comments, you can reach me today at 713-435-1545. Thanks, everyone, and have a good day.

Operator
Operator

[Operator Closing Remarks].