HONOLULU, Nov. 2, 2020 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in
the Pacific, today reported net income of $70.9 million, or $1.63 per diluted share, for the quarter ended
September 30, 2020. Net income
for the quarter ended September 30,
2019 was $36.2 million, or
$0.84 per diluted share.
Consolidated revenue for the third quarter 2020 was $645.2 million compared with $572.1 million for the third quarter 2019.
For the nine months ended September 30,
2020, Matson reported net income of $107.5 million, or $2.48 per diluted share compared with
$67.1 million, or $1.55 per diluted share in 2019.
Consolidated revenue for the nine month period ended September 30, 2020 was $1,683.2 million, compared with $1,662.4 million in 2019.
"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. For the fourth quarter of 2020,
we expect our businesses to continue to perform well and to
generate strong financial results."
Third Quarter 2020 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the third quarter 2020 was 0.8 percent lower year-over-year
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. The
State of Hawaii recently eased
visitor travel restrictions to the islands, but the levels of
tourism are expected to remain low in the near-term and to have a
meaningfully negative impact on Hawaii's economy.
In China, the Company's
container volume in the third quarter 2020 was 124.7 percent higher
year-over-year 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. Matson continued to
realize a rate premium in the third quarter 2020 and achieved
average freight rates that were higher than in the year ago
period. The Company expects increased consumption of
e-commerce and other commodities along with potential further
disruption in air cargo markets to continue to provide
opportunities for its CLX and CLX+ expedited ocean services.
In Guam, the Company's
container volume in the third quarter 2020 was 2.1 percent higher
primarily due to increased demand for home improvement and
government cargo. In the near-term, we expect depressed
tourism levels to have a negative impact on the Guam economy.
In Alaska, the Company's
container volume for the third quarter 2020 increased 1.5 percent
year-over-year 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. The
Alaska economy continues to
recover from the second quarter low, but residual negative economic
effects from the COVID-19 pandemic coupled with a low oil price
environment is expected to have a negative impact on Alaska's economy in the near-term.
The contribution in the third quarter 2020 from the Company's
SSAT joint venture investment was $7.7
million, or $0.7 million
lower than the third quarter 2019. The decrease was primarily
due to lower lift volume.
Logistics: In the third quarter 2020, operating
income for the Company's Logistics segment was $11.9 million, or $0.6 million higher compared to the
operating income achieved in the third quarter 2019. The
increase was due primarily to improved performance in all of the
business lines (i.e., transportation brokerage, freight forwarding,
warehousing and distribution, and supply chain management and other
services) driven by the continued reopening of the U.S. economy.
In the near-term, we expect the elevated consumption of
e-commerce and other high demand goods to benefit most of the
business lines.
For the fourth quarter of 2020, the Company expects its
businesses to continue to perform well and to generate strong
financial results.
Results By Segment
Ocean Transportation — Three months ended September 30, 2020 compared with 2019
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
498.3
|
|
$
|
437.2
|
|
$
|
61.1
|
|
14.0
|
%
|
Operating costs and
expenses
|
|
|
(411.8)
|
|
|
(393.3)
|
|
|
(18.5)
|
|
4.7
|
%
|
Operating
income
|
|
$
|
86.5
|
|
$
|
43.9
|
|
$
|
42.6
|
|
97.0
|
%
|
Operating income
margin
|
|
|
17.4
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
36,400
|
|
|
36,700
|
|
|
(300)
|
|
(0.8)
|
%
|
Hawaii
automobiles
|
|
|
12,900
|
|
|
15,700
|
|
|
(2,800)
|
|
(17.8)
|
%
|
Alaska
containers
|
|
|
19,700
|
|
|
19,400
|
|
|
300
|
|
1.5
|
%
|
China
containers
|
|
|
38,200
|
|
|
17,000
|
|
|
21,200
|
|
124.7
|
%
|
Guam
containers
|
|
|
4,800
|
|
|
4,700
|
|
|
100
|
|
2.1
|
%
|
Other containers
(2)
|
|
|
4,600
|
|
|
4,400
|
|
|
200
|
|
4.5
|
%
|
|
|
|
|
|
|
(1)
|
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.
|
(2)
|
Includes containers
from services in various islands in Micronesia and the South
Pacific, and Okinawa, Japan.
|
Ocean Transportation revenue increased $61.1 million during the three months ended
September 30, 2020, compared with the three months ended
September 30, 2019. The increase was primarily due to
higher freight revenue in the China service, including revenue associated
with the CLX+, partially offset by lower fuel-related surcharge
revenue and lower revenue in the Hawaii service.
On a year-over-year 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 Matson's increased capacity in the tradelane;
Guam volume was 2.1 percent
higher primarily due to increased demand for home improvement and
government cargo; and Other containers volume increased
4.5 percent.
Ocean Transportation operating income increased $42.6 million, or 97.0 percent, during the three
months ended September 30, 2020, compared with the three
months ended September 30, 2019. The increase was
primarily due to a higher contribution from the China service, including the contribution from
the CLX+, lower vessel operating costs, including the impact of one
less vessel operating in the Hawaii service, and the timing of fuel-related
surcharge collections, partially offset by a lower contribution
from the Hawaii service and higher
general and administrative expenses.
The Company's SSAT terminal joint venture investment contributed
$7.7 million during the three months
ended September 30, 2020, compared to a contribution of
$8.4 million during the three months
ended September 30, 2019. The decrease was primarily due
to lower lift volume.
Ocean Transportation — Nine months ended September 30, 2020 compared with 2019
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,310.0
|
|
$
|
1,250.5
|
|
$
|
59.5
|
|
4.8
|
%
|
Operating costs and
expenses
|
|
|
(1,173.3)
|
|
|
(1,177.5)
|
|
|
4.2
|
|
(0.4)
|
%
|
Operating
income
|
|
$
|
136.7
|
|
$
|
73.0
|
|
$
|
63.7
|
|
87.3
|
%
|
Operating income
margin
|
|
|
10.4
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
108,100
|
|
|
109,300
|
|
|
(1,200)
|
|
(1.1)
|
%
|
Hawaii
automobiles
|
|
|
34,400
|
|
|
49,400
|
|
|
(15,000)
|
|
(30.4)
|
%
|
Alaska
containers
|
|
|
55,000
|
|
|
54,600
|
|
|
400
|
|
0.7
|
%
|
China
containers
|
|
|
78,500
|
|
|
47,100
|
|
|
31,400
|
|
66.7
|
%
|
Guam
containers
|
|
|
13,900
|
|
|
14,600
|
|
|
(700)
|
|
(4.8)
|
%
|
Other containers
(2)
|
|
|
12,600
|
|
|
12,700
|
|
|
(100)
|
|
(0.8)
|
%
|
|
|
|
|
|
|
(1)
|
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.
|
(2)
|
Includes containers
from services in various islands in Micronesia and the South
Pacific, and Okinawa, Japan.
|
Ocean Transportation revenue increased $59.5 million, or 4.8 percent, during the nine
months ended September 30, 2020, compared with the nine months
ended September 30, 2019. The
increase was primarily due to higher freight revenue in the
China service, including revenue
associated with the CLX+, partially offset by lower revenue in the
Hawaii service and lower
fuel-related surcharge revenue.
On a year-over-year FEU basis, Hawaii container volume decreased 1.1 percent
primarily due to lower volume as a result of the state's COVID-19
mitigation efforts including restrictions on tourism, partially
offset by volume associated with the dry-docking of one of Pasha's
vessels; Alaska volume increased
by 0.7 percent primarily due to higher northbound volume, including
volume associated with the dry-docking of a competitor's vessel,
partially offset by modestly lower southbound volume; China volume was 66.7 percent higher primarily
due to volume from the CLX+ service; Guam volume was 4.8 percent lower primarily
due to lower demand for retail-related goods resulting from the
COVID–19 pandemic and its related effects; and Other container
volume decreased 0.8 percent.
Ocean Transportation operating income increased $63.7 million, or 87.3 percent, during the nine
months ended September 30, 2020, compared with the nine months
ended September 30, 2019. The
increase was primarily due to a higher contribution from the
China service, including the
contribution from the CLX+, and lower vessel operating costs,
including the impact of one less vessel operating in the
Hawaii service, partially offset
by a lower contribution from the Hawaii service.
The Company's SSAT terminal joint venture investment contributed
$15.4 million during the nine months
ended September 30, 2020, compared to a contribution of
$17.8 million during the nine months
ended September 30, 2019. The
decrease was largely attributable to lower lift volume.
Logistics — Three months ended September 30, 2020 compared with 2019
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Logistics
revenue
|
|
$
|
146.9
|
|
$
|
134.9
|
|
$
|
12.0
|
|
8.9
|
%
|
Operating costs and
expenses
|
|
|
(135.0)
|
|
|
(123.6)
|
|
|
(11.4)
|
|
9.2
|
%
|
Operating
income
|
|
$
|
11.9
|
|
$
|
11.3
|
|
$
|
0.6
|
|
5.3
|
%
|
Operating income
margin
|
|
|
8.1
|
%
|
|
8.4
|
%
|
|
|
|
|
|
Logistics revenue increased $12.0
million, or 8.9 percent, during the three months ended
September 30, 2020, compared with the three months ended
September 30, 2019. The increase was primarily due to
higher transportation brokerage revenue.
Logistics operating income increased $0.6
million, or 5.3 percent, for the three months ended
September 30, 2020, compared with the three months ended
September 30, 2019. The increase was due primarily to a
higher contribution from transportation brokerage.
Logistics — Nine months ended September 30, 2020 compared with 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Logistics
revenue
|
|
$
|
373.2
|
|
$
|
411.9
|
|
$
|
(38.7)
|
|
(9.4)
|
%
|
Operating costs and
expenses
|
|
|
(347.3)
|
|
|
(381.2)
|
|
|
33.9
|
|
(8.9)
|
%
|
Operating
income
|
|
$
|
25.9
|
|
$
|
30.7
|
|
$
|
(4.8)
|
|
(15.6)
|
%
|
Operating income
margin
|
|
|
6.9
|
%
|
|
7.5
|
%
|
|
|
|
|
|
Logistics revenue decreased $38.7
million, or 9.4 percent, during the nine months ended
September 30, 2020, compared with the nine months ended
September 30, 2019. The decrease was primarily due to
lower transportation brokerage and freight forwarding revenue.
Logistics operating income decreased $4.8
million, or 15.6 percent, for the nine months ended
September 30, 2020, compared with the nine months ended
September 30, 2019. The decrease was due primarily to
lower contributions from transportation brokerage and freight
forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $8.5 million from $21.2
million at December 31, 2019
to $12.7 million at
September 30, 2020. Matson generated net cash from
operating activities of $270.8
million during the nine months ended September 30,
2020, compared to $180.4 million
during the nine months ended September 30, 2019. Capital
expenditures, including capitalized vessel construction
expenditures, totaled $111.3 million
for the nine months ended September 30, 2020, compared with
$171.4 million for the nine months
ended September 30, 2019. Total debt decreased by
$134.8 million during the nine
months to $823.6 million as of
September 30, 2020, of which $770.2 million was classified as long-term
debt.
Matson's Net Income and EBITDA were $123.1 million and $328.4
million, respectively, for the twelve months ended
September 30, 2020. The ratio of Matson's Net Debt to
last twelve months EBITDA was 2.5 as of September 30,
2020.
As of September 30, 2020 Matson
had available borrowings under its revolving credit facility of
$518.9 million and a leverage ratio
per the amended debt agreements of 2.4x.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.23 per share
payable on December 3, 2020 to all shareholders of record as
of the close of business on November 12,
2020.
Teleconference and Webcast
A conference call is scheduled for 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.
Date of Conference
Call:
|
Monday, November 2,
2020
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 11:30 a.m. HT
|
Participant Toll Free
Dial-In #:
|
1-877-312-5524
|
International Dial-In
#:
|
1-253-237-1144
|
The conference call will be broadcast live along with a 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 two premium, expedited
services from China to
Long Beach, California, provides
service to Okinawa, Japan and
various islands in the South Pacific, and operates an international
export service from Dutch Harbor
to Asia. 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.
GAAP to Non-GAAP Reconciliation
This press release, the Form 8-K and the information to be
discussed in the conference call include non-GAAP measures.
While Matson reports financial results in accordance with U.S.
generally accepted accounting principles ("GAAP"), the Company also
considers other non-GAAP measures to evaluate performance, make
day-to-day operating decisions, help investors understand our
ability to incur and service debt and to make capital expenditures,
and to understand period-over-period operating results separate and
apart from items that may, or could, have a disproportional
positive or negative impact on results in any particular
period. These non-GAAP measures include, but are not limited
to, Earnings Before Interest, Income Taxes, Depreciation and
Amortization ("EBITDA") and Net Debt-to-EBITDA.
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 performance and financial
results, confidence in making the CLX+ service permanent,
contributions of the AAX service to Alaska volume and consolidated operating
income, transpacific tradelane supply and demand dynamics,
increasing consumption of e-commerce and other commodities,
consumer spending, transpacific air cargo capacity, transpacific
ocean cargo capacity, operational changes and cost management
initiatives, tourism, impacts of the COVID-19 pandemic, cash flow
expectations and uses of cash and cash flows, operating cost
savings, fleet renewal progress, vessel deployments and operating
efficiencies, vessel transit times, fuel strategy and scrubber
program, organic growth opportunities, economic effects of
competitors' services, demand and volume levels in the China service and in the Hawaii, Alaska and Guam tradelanes, economic growth and drivers
in Hawaii, Alaska and Guam, Sand Island terminal upgrades, lift
volumes at SSAT, debt leverage levels, capital expenditures and
potential savings, and the likelihood and severity of recession or
an extended downturn. 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; increases in vessel
charter rates or fuel costs, inability to recharter vessels,
strains on moving cargo through our terminals, or limitations on
the availability of adequate equipment; 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.
Investor Relations
inquiries:
|
News Media
inquiries:
|
Lee
Fishman
|
Keoni
Wagner
|
Matson, Inc.
|
Matson, Inc.
|
510.628.4227
|
510.628.4534
|
lfishman@matson.com
|
kwagner@matson.com
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
(In millions, except per
share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
498.3
|
|
$
|
437.2
|
|
$
|
1,310.0
|
|
$
|
1,250.5
|
Logistics
|
|
|
146.9
|
|
|
134.9
|
|
|
373.2
|
|
|
411.9
|
Total Operating
Revenue
|
|
|
645.2
|
|
|
572.1
|
|
|
1,683.2
|
|
|
1,662.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(495.8)
|
|
|
(472.6)
|
|
|
(1,370.4)
|
|
|
(1,412.5)
|
Income from
SSAT
|
|
|
7.7
|
|
|
8.4
|
|
|
15.4
|
|
|
17.8
|
Selling, general and
administrative
|
|
|
(58.7)
|
|
|
(52.7)
|
|
|
(165.6)
|
|
|
(164.0)
|
Total Costs and
Expenses
|
|
|
(546.8)
|
|
|
(516.9)
|
|
|
(1,520.6)
|
|
|
(1,558.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
98.4
|
|
|
55.2
|
|
|
162.6
|
|
|
103.7
|
Interest
expense
|
|
|
(5.7)
|
|
|
(6.2)
|
|
|
(22.5)
|
|
|
(16.9)
|
Other income
(expense), net
|
|
|
2.4
|
|
|
(0.5)
|
|
|
4.5
|
|
|
0.9
|
Income before Income
Taxes
|
|
|
95.1
|
|
|
48.5
|
|
|
144.6
|
|
|
87.7
|
Income
taxes
|
|
|
(24.2)
|
|
|
(12.3)
|
|
|
(37.1)
|
|
|
(20.6)
|
Net Income
|
|
$
|
70.9
|
|
$
|
36.2
|
|
$
|
107.5
|
|
$
|
67.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
1.65
|
|
$
|
0.84
|
|
$
|
2.50
|
|
$
|
1.57
|
Diluted Earnings Per
Share
|
|
$
|
1.63
|
|
$
|
0.84
|
|
$
|
2.48
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43.1
|
|
|
42.9
|
|
|
43.0
|
|
|
42.8
|
Diluted
|
|
|
43.5
|
|
|
43.3
|
|
|
43.4
|
|
|
43.2
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
(In millions)
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
12.7
|
|
$
|
21.2
|
Other current
assets
|
|
|
276.9
|
|
|
268.4
|
Total current
assets
|
|
|
289.6
|
|
|
289.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
55.2
|
|
|
76.2
|
Property and
equipment, net
|
|
|
1,614.6
|
|
|
1,598.1
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
194.7
|
|
|
202.9
|
Other long-term
assets
|
|
|
324.8
|
|
|
350.8
|
Total long-term
assets
|
|
|
2,517.1
|
|
|
2,555.8
|
Total
assets
|
|
$
|
2,806.7
|
|
$
|
2,845.4
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
53.4
|
|
$
|
48.4
|
Other current
liabilities
|
|
|
400.2
|
|
|
388.3
|
Total current
liabilities
|
|
|
453.6
|
|
|
436.7
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
754.5
|
|
|
910.0
|
Deferred income
taxes
|
|
|
370.9
|
|
|
337.6
|
Other long-term
liabilities
|
|
|
335.9
|
|
|
355.4
|
Total long-term
liabilities
|
|
|
1,461.3
|
|
|
1,603.0
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
891.8
|
|
|
805.7
|
Total liabilities and
shareholders' equity
|
|
$
|
2,806.7
|
|
$
|
2,845.4
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
107.5
|
|
$
|
67.1
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
84.5
|
|
|
73.4
|
|
Amortization of
operating lease right of use assets
|
|
|
53.1
|
|
|
52.3
|
|
Deferred income
taxes
|
|
|
33.5
|
|
|
21.9
|
|
Share-based
compensation expense
|
|
|
12.0
|
|
|
8.7
|
|
Income from
SSAT
|
|
|
(15.4)
|
|
|
(17.8)
|
|
Distribution from
SSAT
|
|
|
37.9
|
|
|
14.7
|
|
Other
|
|
|
0.5
|
|
|
(1.5)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(28.9)
|
|
|
(0.2)
|
|
Deferred dry-docking
payments
|
|
|
(11.1)
|
|
|
(17.9)
|
|
Deferred dry-docking
amortization
|
|
|
17.8
|
|
|
25.9
|
|
Prepaid expenses and
other assets
|
|
|
19.6
|
|
|
25.3
|
|
Accounts payable,
accruals and other liabilities
|
|
|
24.0
|
|
|
(11.7)
|
|
Operating lease
liabilities
|
|
|
(53.7)
|
|
|
(51.7)
|
|
Other long-term
liabilities
|
|
|
(10.5)
|
|
|
(8.1)
|
|
Net cash provided by
operating activities
|
|
|
270.8
|
|
|
180.4
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(57.8)
|
|
|
(108.7)
|
|
Other capital
expenditures
|
|
|
(53.5)
|
|
|
(62.7)
|
|
Proceeds from disposal
of property and equipment
|
|
|
15.7
|
|
|
3.1
|
|
Cash deposits into
Capital Construction Fund
|
|
|
(97.1)
|
|
|
(68.2)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
97.1
|
|
|
68.2
|
|
Net cash used in
investing activities
|
|
|
(95.6)
|
|
|
(168.3)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
325.5
|
|
|
—
|
|
Repayments of
debt
|
|
|
(204.2)
|
|
|
(28.4)
|
|
Proceeds from
revolving credit facility
|
|
|
547.4
|
|
|
383.3
|
|
Repayments of
revolving credit facility
|
|
|
(803.5)
|
|
|
(328.3)
|
|
Payment of financing
costs
|
|
|
(18.5)
|
|
|
—
|
|
Proceeds from issuance
of capital stock
|
|
|
0.1
|
|
|
0.1
|
|
Dividends
paid
|
|
|
(29.1)
|
|
|
(27.7)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(5.6)
|
|
|
(3.3)
|
|
Net cash used in
financing activities
|
|
|
(187.9)
|
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash, Cash Equivalents and Restricted Cash
|
|
|
(12.7)
|
|
|
7.8
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of the Period
|
|
|
28.4
|
|
|
24.5
|
|
Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
15.7
|
|
$
|
32.3
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash, End of the
Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
12.7
|
|
$
|
23.6
|
|
Restricted
Cash
|
|
|
3.0
|
|
|
8.7
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
15.7
|
|
$
|
32.3
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
22.4
|
|
$
|
16.8
|
|
Income tax (refunds)
and payments, net
|
|
$
|
(18.0)
|
|
$
|
(25.7)
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
5.9
|
|
$
|
9.8
|
|
MATSON, INC.
AND SUBSIDIARIES
Total Debt to Net
Debt and Net Income to EBITDA Reconciliations
(Unaudited)
|
|
NET DEBT
RECONCILIATION
|
|
|
|
|
|
|
September 30,
|
(In millions)
|
|
2020
|
Total Debt
(1):
|
|
$
|
823.6
|
Less: Cash and
cash equivalents
|
|
|
(12.7)
|
Net Debt
|
|
$
|
810.9
|
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
|
|
Last Twelve
|
|
(In millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Months
|
|
Net Income
|
|
$
|
70.9
|
|
$
|
36.2
|
|
$
|
34.7
|
|
$
|
123.1
|
|
Add:
Income taxes
|
|
|
24.2
|
|
|
12.3
|
|
|
11.9
|
|
|
41.6
|
|
Add:
Interest expense
|
|
|
5.7
|
|
|
6.2
|
|
|
(0.5)
|
|
|
28.1
|
|
Add:
Depreciation and amortization
|
|
|
27.9
|
|
|
25.7
|
|
|
2.2
|
|
|
109.4
|
|
Add:
Dry-dock amortization
|
|
|
6.0
|
|
|
8.7
|
|
|
(2.7)
|
|
|
26.2
|
|
EBITDA (2)
|
|
$
|
134.7
|
|
$
|
89.1
|
|
$
|
45.6
|
|
$
|
328.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
(In millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Net Income
|
|
$
|
107.5
|
|
$
|
67.1
|
|
$
|
40.4
|
|
Add:
Income taxes
|
|
|
37.1
|
|
|
20.6
|
|
|
16.5
|
|
Add:
Interest expense
|
|
|
22.5
|
|
|
16.9
|
|
|
5.6
|
|
Add:
Depreciation and amortization
|
|
|
82.5
|
|
|
72.8
|
|
|
9.7
|
|
Add:
Dry-dock amortization
|
|
|
17.8
|
|
|
25.9
|
|
|
(8.1)
|
|
EBITDA (2)
|
|
$
|
267.4
|
|
$
|
203.3
|
|
$
|
64.1
|
|
|
|
|
|
|
|
(1)
|
Total Debt is
presented before any reduction for deferred loan fees as required
by GAAP.
|
(2)
|
EBITDA is defined as
the sum of net income plus income taxes, interest expense and
depreciation and amortization (including deferred dry-docking
amortization). EBITDA should not be considered as an
alternative to net income (as determined in accordance with GAAP),
as an indicator of our operating performance, or to cash flows from
operating activities (as determined in accordance with GAAP) as a
measure of liquidity. Our calculation of EBITDA may not be
comparable to EBITDA as calculated by other companies, nor is this
calculation identical to the EBITDA used by our lenders to
determine financial covenant compliance.
|
View original
content:http://www.prnewswire.com/news-releases/matson-inc-announces-third-quarter-2020-results-301165003.html
SOURCE Matson, Inc.