Kirby Corporation (NYSE:KEX) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:30 am ET
Good morning, and welcome to the Kirby Corporation 2020 Second Quarter Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Mr. Eric Holcomb, Kirby's Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining us. With me today are David Grzebinski, Kirby's President and Chief Executive Officer; and Bill Harvey, Kirby's Executive Vice President and Chief Financial Officer. A slide presentation for today's conference call, as well as the earnings release that was issued earlier today can be found on our website at kirbycorp.com.
During this conference call, we may refer to certain non-GAAP or adjusted financial measures. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings press release and are also available on our website in the Investor Relations section under Financials.
As a reminder, 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 risks and uncertainties, and our actual results could differ materially from those anticipated as a result of various factors, including the impact of COVID -- of the COVID-19 pandemic and the related response of governments on global and regional market conditions and the Company's business. A list of these risk factors can be found in Kirby's Form 10-K for the year ended December 31, 2019, and subsequent quarterly filings on Form 10-Q.
I will now turn the call over to David.
David W. Grzebinski
Thank you, Eric, and good morning, everyone. Earlier today, we announced 2020 second quarter earnings of $0.42 per share. This quarter's results were heavily impacted by COVID-19 and the resulting reductions in demand for Kirby's products and services. In addition to the effects of declining activity, we incurred charges of $0.06 per share, including bad debt as a result of the bankruptcy of a large oil and gas customer and severance costs. During the quarter, we aggressively reduced costs across the Company and focused on cash generation, resulting in decent earnings and strong cash flow despite the challenging market dynamics. We'll talk more about the second quarter's results in a few moments.
Our pandemic response plan, which we activated in early March, has successfully ensured business continuity, uninterrupted customer service and the safety of our employees. I'm pleased to report that all of Kirby's businesses have continued to operate without disruption. I'm proud of the resilience of our dedicated employees during these difficult times. And it's through their efforts that we are dealing with the challenging circumstances and ensuring continuous operations without sacrificing our commitment to safety and customer service.
Moving to our segments. In marine transportation, the inland and coastal markets were significantly impacted by COVID-19 and the resulting decline in demand for many of the products which we transport. During the second quarter, refinery utilization declined sharply from 82% at the beginning of April to 68%