HONOLULU, Oct. 8, 2020 /PRNewswire/ -- Matson, Inc. (NYSE:
MATX) today announces preliminary third quarter financial results,
provides a business update and announces that its third quarter
earnings call date will be held on November
2, 2020.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson's businesses continued to perform well in the third
quarter despite the ongoing challenges from the COVID-19 pandemic
and related economic effects," said Chairman and Chief Executive
Officer Matt Cox. "Our China
service, consisting of the CLX and CLX+ services, was the primary
driver of the increase in consolidated operating income
year-over-year as a result of strong demand for our expedited ocean
services and ongoing challenges in the transpacific air freight
markets. I am confident that we can make the CLX+ a permanent
service because of Matson's fifteen-year track record of operating
our industry leading expedited CLX service in the transpacific
tradelane, the introduction of our new Alaska-to-Asia Express (AAX) service for
Alaska seafood exports to
Asia as part of the CLX+ westbound
return trip to China, and the
likelihood of continued favorable transpacific tradelane supply and
demand dynamics going forward."
Mr. Cox added, "In our other core tradelanes, we saw an
improvement in freight volume in each of the tradelanes from the
levels achieved in the second quarter during the height of the
COVID-19 pandemic as freight demand improved with the reopening of
local economies. Hawaii volume approached the level achieved
in the prior year quarter, although continued restrictions on
tourism and a second shelter-in-place order in the latter half of
the third quarter weighed on freight demand. In Alaska and
Guam, we saw modestly higher
year-over-year volume growth. Logistics operating income
increased year-over-year as the continued reopening of the U.S.
economy led to improved performance in all of the business
lines. We also continued to achieve cost benefits from our
previously-announced cost management initiatives. As a result,
Matson expects third quarter operating income for Ocean
Transportation of $84.5 to
$86.5 million and Logistics operating
income of $11.5 to $12.5 million. We also expect third quarter
2020 net income and diluted EPS to be $67.2 to $69.4
million and $1.55 to
$1.60, respectively."
Third Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended September 30,
2020 compared to the three months ended September 30, 2019 and on a FEU basis:
- Hawaii container volume
decreased 0.8 percent primarily due to lower volume from the
state's COVID-19 mitigation efforts including restrictions on
tourism and a second shelter-in-place order that took effect in
August;
- Alaska volume increased 1.5
percent primarily due to higher southbound volume as a result of
stronger seafood volume compared to the prior year, partially
offset by modestly lower northbound volume;
- China volume was 124.7 percent
higher primarily due to volume from the CLX+ service in addition to
higher volume on the CLX service as a result of increased capacity
in the tradelane;
- Guam volume was 2.1 percent
higher primarily due to increased demand for retail-related goods
as the local economy reopened following the shelter-in-place in the
second quarter of 2020; and
- Other containers volume increased 4.5 percent.
- Approximate volumes included for the period are based on the
voyage departure date, but revenue and operating income are
adjusted to reflect the percentage of revenue and operating income
earned during the reporting period for voyages in transit at the
end of each reporting period.
- Other containers includes containers from services in various
islands in Micronesia and the
South Pacific, and Okinawa,
Japan.
Liquidity and Debt Outstanding
Total debt decreased by $66.4
million during the three months to $823.6 million as of September 30, 2020. As of September 30,
2020, Matson had available borrowings under its revolving credit
facility of approximately $519
million. The leverage ratio under the debt agreements as of
September 30, 2020 was approximately
2.4x.
A slide presentation that accompanies this press release is
available on the Company's website at www.matson.com, under
Investors.
Teleconference and Webcast
A conference call is scheduled on November 2, 2020 at 4:30
p.m. ET when Matt Cox,
Chairman and Chief Executive Officer, and Joel Wine, Senior Vice President and Chief
Financial Officer, will discuss Matson's third quarter results.
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Date of Conference
Call:
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Monday, November 2,
2020
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Scheduled
Time:
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4:30 p.m. ET / 1:30
p.m. PT / 11:30 a.m. HT
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Participant Toll Free
Dial-In #:
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1-877-312-5524
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International Dial-In
#:
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1-253-237-1144
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The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors. A replay of the conference call
will be available approximately two hours after the call through
November 9, 2020 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
8075505. The slides and audio webcast of the conference call
will be archived for one full quarter on the Company's website at
www.matson.com, under Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of
ocean transportation and logistics services. Matson provides a
vital lifeline to the domestic non-contiguous economies of
Hawaii, Alaska, and Guam, and to other island economies in
Micronesia. Matson also operates a
premium, expedited service from China to Southern
California and provides services to Okinawa, Japan and various islands in the
South Pacific. The Company's fleet of owned and chartered
vessels includes containerships, combination container and
roll-on/roll-off ships and custom-designed barges. Matson
Logistics, established in 1987, extends the geographic reach of
Matson's transportation network throughout the continental
U.S. Its integrated, asset-light logistics services include
rail intermodal, highway brokerage, warehousing, freight
consolidation, Asia supply chain
services, and forwarding to Alaska. Additional information
about the Company is available at www.matson.com.
Forward-Looking Statements
Statements in this news release that are not historical facts
are "forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995, including without
limitation those statements regarding operating income, net income,
earnings per share, the COVID-19 pandemic and subsequent economic
effects, making the CLX+ service permanent, contributions of the
AAX service to Alaska volume,
demand for transpacific expedited ocean services, additional CLX
vessel charter sailings, economic growth and drivers in
Hawaii, Alaska and Guam, and operational changes. These
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from those contemplated
by the relevant forward-looking statement, including but not
limited to risks and uncertainties relating to repeal, substantial
amendment or waiver of the Jones Act or its application, or our
failure to maintain our status as a United States citizen under the Jones Act;
regional, national and international economic conditions; new or
increased competition or improvements in competitors' service
levels; fuel prices, our ability to collect fuel-related surcharges
and/or the cost or limited availability of low-sulfur fuel; delays
or cost overruns related to the installation of scrubbers; our
relationship with vendors, customers and partners and changes in
related agreements; the actions of our competitors; our ability to
offer a differentiated service in China for which customers are willing to pay a
significant premium; the imposition of tariffs or a change in
international trade policies; the magnitude and timing of the
impact of public health crises, including COVID-19; the ability of
the NASSCO shipyard to construct and deliver Matsonia on the
contemplated timeframe; any unanticipated dry-dock or repair
expenses; any delays or cost overruns related to the modernization
of terminals; consummating and integrating acquisitions; changes in
general economic and/or industry-specific conditions; competition
and growth rates within the logistics industry; freight levels and
increasing costs and availability of truck capacity or alternative
means of transporting freight; changes in relationships with
existing truck, rail, ocean and air carriers; changes in customer
base due to possible consolidation among customers; conditions in
the financial markets; changes in our credit profile and our future
financial performance; our ability to obtain future debt
financings; continuation of the Title XI and CCF programs; the
impact of future and pending legislation, including environmental
legislation; government regulations and investigations; relations
with our unions; satisfactory negotiation and renewal of expired
collective bargaining agreements without significant disruption to
Matson's operations; war, terrorist attacks or other acts of
violence; the use of our information technology and communication
systems and cybersecurity attacks; and the occurrence of marine
accidents, poor weather or natural disasters. These
forward-looking statements are not guarantees of future
performance. This release should be read in conjunction with
our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q
for the quarter ended March 31, 2020,
and our other filings with the SEC through the date of this
release, which identify important factors that could affect the
forward-looking statements in this release. We do not
undertake any obligation to update our forward-looking
statements.
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Investor Relations
inquiries:
|
News Media
inquiries:
|
Lee
Fishman
|
Keoni
Wagner
|
Matson, Inc.
|
Matson, Inc.
|
510.628.4227
|
510.628.4534
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lfishman@matson.com
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kwagner@matson.com
|
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SOURCE Matson, Inc.