HONOLULU, Jan. 11, 2021 /PRNewswire/ -- Matson, Inc.
(NYSE: MATX) today announces preliminary fourth quarter financial
results, provides a business update and announces that its fourth
quarter earnings call date will be held on February 23, 2021.
"Matson capped off a strong year with continued solid
performance in the fourth quarter from Ocean Transportation and
Logistics despite the ongoing challenges from the COVID-19 pandemic
and related economic effects," said Chairman and Chief Executive
Officer Matt Cox. "Within Ocean
Transportation, our China service
saw significant demand for its CLX and CLX+ expedited ocean
services through year end and was the primary driver of the
increase in consolidated operating income year-over-year. We
continued to see favorable supply and demand dynamics in the
transpacific tradelane during the quarter, and we continue to
expect largely all of these trends to remain favorable in the first
half of 2021 as the pandemic persists. As the pandemic
subsides with widespread vaccination, we expect some of the supply
and demand factors that we are currently benefitting from to remain
and continue to drive demand for our CLX and CLX+ services."
Mr. Cox added, "In our other core tradelanes, we continued to
see elevated demand for sustenance and home improvement goods lead
to higher quarterly year-over-year volume growth in Hawaii, Alaska and Guam. Logistics operating
income increased year-over-year as a result of elevated goods
consumption and inventory restocking and tight supply and demand
fundamentals in our core markets. We also continued to achieve cost
benefits from our previously-announced cost management
initiatives. As a result, Matson expects fourth quarter
operating income for Ocean Transportation of $100.0 to $105.0
million and Logistics operating income of $8.0 to $9.0
million. We also expect fourth quarter 2020 net income
and diluted EPS to be $76.1 to
$81.6 million and $1.74 to $1.87,
respectively."
Fourth Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended December 31,
2020 compared to the three months ended December 31, 2019 and on a FEU basis:
- Hawaii container volume
increased 0.8 percent primarily due to an additional westbound
sailing and higher demand for sustenance and home improvement
goods, partially offset by lower tourism activity as a result of
the pandemic;
- Alaska volume increased 18.9
percent as a result of higher northbound volume primarily due to
two additional sailings and higher demand for sustenance and home
improvement goods, and modestly higher southbound volume;
- China volume was 139.1 percent
higher primarily due to volume from the CLX+ service in addition to
higher volume on the CLX service as a result of our increased
capacity in the tradelane;
- Guam volume was 4.2 percent
higher primarily due to higher demand for sustenance and home
improvement goods, partially offset by lower tourism activity as a
result of the pandemic; and
- Other containers volume increased 16.7 percent.
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(1)
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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.
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(2)
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Other containers
includes containers from services in various islands in Micronesia
and the South Pacific, and Okinawa, Japan.
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Debt Outstanding
Total debt decreased by $63.6
million during the three months to $760.0 million as of December 31, 2020. Based on the midpoint of
the operating income ranges for Ocean Transportation and Logistics,
the leverage ratio under the debt agreements as of December 31, 2020 was approximately 1.8x.
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 February 23, 2021 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 fourth quarter
results.
Date of Conference
Call:
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Tuesday, February 23,
2021
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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 March 2, 2021 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
4135479. 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.
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 related economic
effects, vaccinations, supply and demand dynamics in the
transpacific tradelane, economic growth and drivers in Hawaii, Alaska and Guam, and cost management
initiatives. 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; 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 September 30, 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:
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News Media
inquiries:
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Lee
Fishman
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Keoni
Wagner
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Matson, Inc.
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Matson, Inc.
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510.628.4227
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510.628.4534
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lfishman@matson.com
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kwagner@matson.com
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SOURCE Matson, Inc.