HONOLULU, Feb. 23, 2021 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in
the Pacific, today reported net income of $85.6 million, or $1.96 per diluted share, for the quarter ended
December 31, 2020. Net income
for the quarter ended December 31,
2019 was $15.6 million, or
$0.36 per diluted share.
Consolidated revenue for the fourth quarter 2020 was $700.1 million compared with $540.7 million for the fourth quarter 2019.
For the twelve months ended December 31,
2020, Matson reported net income of $193.1 million, or $4.44 per diluted share compared with
$82.7 million, or $1.91 per diluted share in 2019.
Consolidated revenue for the twelve month period ended December 31, 2020 was $2,383.3 million, compared with $2,203.1 million in 2019.
"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 and was the primary driver of the increase in consolidated
operating income year-over-year for the quarter and the full
year. We continued to see favorable supply and demand
dynamics in the transpacific tradelane during the fourth 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 for the fourth
quarter, we continued to see elevated demand for sustenance and
home improvement goods lead to higher year-over-year volume growth
in Hawaii, Alaska and Guam. For the full year 2020,
Hawaii and Guam volume approached the levels achieved in
the year ago period despite the economic challenges from the
pandemic, and Alaska volume was
modestly higher than the level achieved in the full year
2019. Logistics operating income for the fourth quarter
increased year-over-year as a result of elevated goods consumption
and inventory restocking and tight supply and demand fundamentals
in our core markets. For the full year 2020, Logistics
operating income was modestly lower compared to the level achieved
in the full year 2019 largely due to the pandemic's impacts on the
business lines in the first half of the year."
Fourth Quarter 2020 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the fourth quarter 2020 was 0.8 percent higher year-over-year
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. The
State of Hawaii eased visitor
travel restrictions to the islands in October and saw an
improvement in the daily passenger counts, but tourism activity
remained significantly below the levels achieved in the prior year
period. Tourism levels are expected to remain low until the
pandemic subsides and to have a meaningfully negative impact on
Hawaii's economy.
In China, the Company's
container volume in the fourth quarter 2020 was 139.1 percent
higher year-over-year 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. Matson continued to
realize a rate premium in the fourth quarter 2020 and achieved
average freight rates that were higher than in the year ago
period. The Company expects elevated consumption of
e-commerce and other commodities coupled with other supply and
demand factors in the tradelane to largely 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.
In Guam, the Company's
container volume in the fourth quarter 2020 increased 4.2 percent
year-over-year primarily due to higher demand for sustenance and
home improvement goods, partially offset by lower tourism activity
as a result of the pandemic. 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 fourth quarter 2020 increased 18.9 percent
year-over-year 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. The Alaska economy
continues to be negatively impacted by the economic effects from
the COVID-19 pandemic and a low oil price environment. In the
near-term, we expect the economy to slowly recover, but remain
challenged until the pandemic subsides.
The contribution in the fourth quarter 2020 from the Company's
SSAT joint venture investment was $10.9
million, or $7.9 million
higher than the fourth quarter 2019. The increase was driven
by higher lift volume.
Logistics: In the fourth quarter 2020, operating
income for the Company's Logistics segment was $9.6 million, or $2.0 million higher compared to the
operating income achieved in the fourth quarter 2019. The
increase was due primarily to a higher contribution from
transportation brokerage as a result of elevated goods consumption
and inventory restocking and tight supply and demand fundamentals
in our core markets.
Results By
Segment
|
Ocean
Transportation — Three months ended December 31, 2020 compared with
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
543.9
|
|
$
|
416.1
|
|
$
|
127.8
|
|
30.7
|
%
|
Operating costs and
expenses
|
|
|
(435.8)
|
|
|
(398.3)
|
|
|
(37.5)
|
|
9.4
|
%
|
Operating
income
|
|
$
|
108.1
|
|
$
|
17.8
|
|
$
|
90.3
|
|
507.3
|
%
|
Operating income
margin
|
|
|
19.9
|
%
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
37,600
|
|
|
37,300
|
|
|
300
|
|
0.8
|
%
|
Hawaii
automobiles
|
|
|
12,200
|
|
|
13,500
|
|
|
(1,300)
|
|
(9.6)
|
%
|
Alaska
containers
|
|
|
17,600
|
|
|
14,800
|
|
|
2,800
|
|
18.9
|
%
|
China
containers
|
|
|
40,400
|
|
|
16,900
|
|
|
23,500
|
|
139.1
|
%
|
Guam
containers
|
|
|
5,000
|
|
|
4,800
|
|
|
200
|
|
4.2
|
%
|
Other containers
(2)
|
|
|
4,900
|
|
|
4,200
|
|
|
700
|
|
16.7
|
%
|
|
|
|
|
|
|
(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 $127.8 million during the three months ended
December 31, 2020, compared with the three months ended
December 31, 2019. The increase
was primarily due to higher freight revenue in the China service, including revenue associated
with the CLX+ service, and higher service revenue in Alaska, partially offset by lower fuel-related
surcharge revenue.
On a year-over-year 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.
Ocean Transportation operating income increased $90.3 million, or 507.3 percent, during the three
months ended December 31, 2020, compared with the three months
ended December 31, 2019. The increase was primarily due
to a higher contribution from the China service, including the contribution from
the CLX+ service, the timing of fuel-related surcharge collections,
a higher contribution from SSAT and a higher contribution from the
Alaska service, partially offset
by higher selling, general and administrative expenses.
The Company's SSAT terminal joint venture investment contributed
$10.9 million during the three months
ended December 31, 2020, compared to a contribution of
$3.0 million during the three months
ended December 31, 2019. The increase was driven by
higher lift volume.
Ocean
Transportation — Year ended December 31 2020 compared with
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,853.9
|
|
$
|
1,666.6
|
|
$
|
187.3
|
|
11.2
|
%
|
Operating costs and
expenses
|
|
|
(1,609.1)
|
|
|
(1,575.8)
|
|
|
(33.3)
|
|
2.1
|
%
|
Operating
income
|
|
$
|
244.8
|
|
$
|
90.8
|
|
$
|
154.0
|
|
169.6
|
%
|
Operating income
margin
|
|
|
13.2
|
%
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
145,700
|
|
|
146,600
|
|
|
(900)
|
|
(0.6)
|
%
|
Hawaii
automobiles
|
|
|
46,600
|
|
|
62,900
|
|
|
(16,300)
|
|
(25.9)
|
%
|
Alaska
containers
|
|
|
72,600
|
|
|
69,400
|
|
|
3,200
|
|
4.6
|
%
|
China
containers
|
|
|
118,900
|
|
|
64,000
|
|
|
54,900
|
|
85.8
|
%
|
Guam
containers
|
|
|
18,900
|
|
|
19,400
|
|
|
(500)
|
|
(2.6)
|
%
|
Other containers
(2)
|
|
|
17,500
|
|
|
16,900
|
|
|
600
|
|
3.6
|
%
|
|
|
|
|
|
|
(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 $187.3 million, or 11.2 percent, during the year
ended December 31, 2020, compared with the year ended
December 31, 2019. The increase was primarily due to
higher freight revenue in the China service, including revenue associated
with the CLX+ service, partially offset by lower fuel-related
surcharge revenue and lower revenue in Hawaii.
On a year-over-year FEU basis, Hawaii container volume decreased 0.6 percent
primarily due to lower volume as a result of the pandemic and its
effects on tourism, partially offset by volume associated with the
dry-docking of one of Pasha's vessels in the second quarter and
higher demand for sustenance and home improvement goods;
Alaska volume increased by 4.6
percent primarily due to higher northbound volume, including volume
associated with the dry-docking of a competitor's vessel and one
additional sailing, partially offset by modestly lower southbound
volume; China volume was 85.8
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 2.6 percent lower primarily
due to lower demand for retail-related goods resulting from the
pandemic and its related effects; and Other container volume
increased 3.6 percent.
Ocean Transportation operating income increased $154.0 million, or 169.6 percent, during the year
ended December 31, 2020, compared with the year ended
December 31, 2019. The increase was primarily due to a
higher contribution from the China
service, including the contribution from the CLX+ service, 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
$26.3 million during the year ended
December 31, 2020, compared to a contribution of $20.8 million during the year ended
December 31, 2019. The increase was largely attributable
to lower operating costs.
Logistics — Three
months ended December 31, 2020 compared with 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Logistics
revenue
|
|
$
|
156.2
|
|
$
|
124.6
|
|
$
|
31.6
|
|
25.4
|
%
|
Operating costs and
expenses
|
|
|
(146.6)
|
|
|
(117.0)
|
|
|
(29.6)
|
|
25.3
|
%
|
Operating
income
|
|
$
|
9.6
|
|
$
|
7.6
|
|
$
|
2.0
|
|
26.3
|
%
|
Operating income
margin
|
|
|
6.1
|
%
|
|
6.1
|
%
|
|
|
|
|
|
Logistics revenue increased $31.6
million, or 25.4 percent, during the three months ended
December 31, 2020, compared with the three months ended
December 31, 2019. The increase was primarily due to
higher transportation brokerage revenue.
Logistics operating income increased $2.0
million, or 26.3 percent, for the three months ended
December 31, 2020, compared with the three months ended
December 31, 2019. The increase was due primarily to a
higher contribution from transportation brokerage.
Logistics — Year
ended December 31, 2020 compared with 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Logistics
revenue
|
|
$
|
529.4
|
|
$
|
536.5
|
|
$
|
(7.1)
|
|
(1.3)
|
%
|
Operating costs and
expenses
|
|
|
(493.9)
|
|
|
(498.2)
|
|
|
4.3
|
|
(0.9)
|
%
|
Operating
income
|
|
$
|
35.5
|
|
$
|
38.3
|
|
$
|
(2.8)
|
|
(7.3)
|
%
|
Operating income
margin
|
|
|
6.7
|
%
|
|
7.1
|
%
|
|
|
|
|
|
Logistics revenue decreased $7.1
million, or 1.3 percent, during the year ended
December 31, 2020, compared with the year ended
December 31, 2019. The decrease was primarily due to
lower transportation brokerage and freight forwarding revenue.
Logistics operating income decreased $2.8
million, or 7.3 percent, for the year ended
December 31, 2020, compared with year ended December 31,
2019. The decrease was due primarily to a lower contribution
from freight forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents decreased by $6.8 million from $21.2
million at December 31, 2019
to $14.4 million at
December 31, 2020. Matson generated net cash from
operating activities of $429.8
million during the year ended December 31, 2020,
compared to $248.8 million during the
year ended December 31, 2019. Capital expenditures,
including capitalized vessel construction expenditures, totaled
$192.3 million for the year ended
December 31, 2020, compared with $310.3 million for the year ended
December 31, 2019. Total debt decreased by $198.3 million during the year to
$760.1 million as of
December 31, 2020, of which $700.9 million was classified as long-term
debt.
As of December 31, 2020 Matson had
available borrowings under its revolving credit facility of
$570.1 million and a leverage ratio
per the amended debt agreements of approximately 1.7x.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.23 per share
payable on March 4, 2021 to all shareholders of record as of
the close of business on February 11, 2021.
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, Executive Vice President and Chief
Financial Officer, will discuss Matson's fourth quarter
results.
Date of Conference
Call:
|
Tuesday, February 23,
2021
|
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 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.
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, the COVID-19 pandemic and related economic effects,
vaccinations, supply and demand dynamics in the transpacific
tradelane, inventory restocking and consumption of e-commerce and
other commodities, tourism levels, cash flow expectations and uses
of cash and cash flows, vessel deployments and operating
efficiencies, duration and availability of vessel charters, vessel
transit times, organic growth opportunities, 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, lift volumes at SSAT, capital
expenditures and reducing debt. 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; 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:
|
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
|
|
Years
Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions, except per
share amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
543.9
|
|
$
|
416.1
|
|
$
|
1,853.9
|
|
$
|
1,666.6
|
Logistics
|
|
|
156.2
|
|
|
124.6
|
|
|
529.4
|
|
|
536.5
|
Total Operating
Revenue
|
|
|
700.1
|
|
|
540.7
|
|
|
2,383.3
|
|
|
2,203.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(533.9)
|
|
|
(465.5)
|
|
|
(1,904.3)
|
|
|
(1,878.0)
|
Income from
SSAT
|
|
|
10.9
|
|
|
3.0
|
|
|
26.3
|
|
|
20.8
|
Selling, general and
administrative
|
|
|
(59.4)
|
|
|
(52.8)
|
|
|
(225.0)
|
|
|
(216.8)
|
Total Costs and
Expenses
|
|
|
(582.4)
|
|
|
(515.3)
|
|
|
(2,103.0)
|
|
|
(2,074.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
117.7
|
|
|
25.4
|
|
|
280.3
|
|
|
129.1
|
Interest
expense
|
|
|
(4.9)
|
|
|
(5.6)
|
|
|
(27.4)
|
|
|
(22.5)
|
Other income
(expense), net
|
|
|
1.6
|
|
|
0.3
|
|
|
6.1
|
|
|
1.2
|
Income before Income
Taxes
|
|
|
114.4
|
|
|
20.1
|
|
|
259.0
|
|
|
107.8
|
Income
taxes
|
|
|
(28.8)
|
|
|
(4.5)
|
|
|
(65.9)
|
|
|
(25.1)
|
Net Income
|
|
$
|
85.6
|
|
$
|
15.6
|
|
$
|
193.1
|
|
$
|
82.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
1.99
|
|
$
|
0.36
|
|
$
|
4.48
|
|
$
|
1.93
|
Diluted Earnings Per
Share
|
|
$
|
1.96
|
|
$
|
0.36
|
|
$
|
4.44
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43.1
|
|
|
42.9
|
|
|
43.1
|
|
|
42.8
|
Diluted
|
|
|
43.7
|
|
|
43.3
|
|
|
43.5
|
|
|
43.3
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
14.4
|
|
$
|
21.2
|
Other current
assets
|
|
|
291.5
|
|
|
268.4
|
Total current
assets
|
|
|
305.9
|
|
|
289.6
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
48.7
|
|
|
76.2
|
Property and
equipment, net
|
|
|
1,689.9
|
|
|
1,598.1
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
192.0
|
|
|
202.9
|
Other long-term
assets
|
|
|
336.3
|
|
|
350.8
|
Total long-term
assets
|
|
|
2,594.7
|
|
|
2,555.8
|
Total
assets
|
|
$
|
2,900.6
|
|
$
|
2,845.4
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
59.2
|
|
$
|
48.4
|
Other current
liabilities
|
|
|
452.3
|
|
|
388.3
|
Total current
liabilities
|
|
|
511.5
|
|
|
436.7
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
685.6
|
|
|
910.0
|
Deferred income
taxes
|
|
|
389.6
|
|
|
337.6
|
Other long-term
liabilities
|
|
|
352.7
|
|
|
355.4
|
Total long-term
liabilities
|
|
|
1,427.9
|
|
|
1,603.0
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
961.2
|
|
|
805.7
|
Total liabilities and
shareholders' equity
|
|
$
|
2,900.6
|
|
$
|
2,845.4
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(In
millions)
|
|
2020
|
|
2019
|
|
2018
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
193.1
|
|
$
|
82.7
|
|
$
|
109.0
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
114.9
|
|
|
100.4
|
|
|
94.4
|
|
Amortization of
operating lease right of use assets
|
|
|
74.8
|
|
|
60.7
|
|
|
—
|
|
Deferred income
taxes
|
|
|
52.1
|
|
|
23.6
|
|
|
29.3
|
|
Loss (Gain) on
disposal of property and equipment
|
|
|
2.8
|
|
|
(1.4)
|
|
|
(1.9)
|
|
Share-based
compensation expense
|
|
|
18.8
|
|
|
11.3
|
|
|
12.1
|
|
Income from
SSAT
|
|
|
(26.3)
|
|
|
(20.8)
|
|
|
(36.8)
|
|
Distributions from
SSAT
|
|
|
55.4
|
|
|
25.2
|
|
|
42.0
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(48.0)
|
|
|
17.8
|
|
|
(29.1)
|
|
Deferred dry-docking
payments
|
|
|
(16.8)
|
|
|
(25.9)
|
|
|
(19.2)
|
|
Deferred dry-docking
amortization
|
|
|
25.1
|
|
|
34.3
|
|
|
37.4
|
|
Prepaid expenses and
other assets
|
|
|
21.9
|
|
|
24.5
|
|
|
4.2
|
|
Accounts payable,
accruals and other liabilities
|
|
|
44.8
|
|
|
(13.9)
|
|
|
71.2
|
|
Operating lease
liabilities
|
|
|
(75.9)
|
|
|
(59.9)
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
(6.9)
|
|
|
(9.8)
|
|
|
(7.6)
|
|
Net cash provided by
operating activities
|
|
|
429.8
|
|
|
248.8
|
|
|
305.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditure
|
|
|
(87.8)
|
|
|
(219.1)
|
|
|
(338.6)
|
|
Other capital
expenditures
|
|
|
(104.5)
|
|
|
(91.2)
|
|
|
(62.6)
|
|
Proceeds from disposal
of property and equipment
|
|
|
15.3
|
|
|
3.4
|
|
|
136.3
|
|
Cash deposits into
Capital Construction Fund
|
|
|
(132.4)
|
|
|
(96.2)
|
|
|
(340.0)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
132.4
|
|
|
96.2
|
|
|
340.9
|
|
Proceeds from sale of
other investments
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
Net cash used in
investing activities
|
|
|
(177.0)
|
|
|
(306.9)
|
|
|
(260.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
325.5
|
|
|
—
|
|
|
—
|
|
Repayments of
debt
|
|
|
(216.5)
|
|
|
(42.1)
|
|
|
(30.7)
|
|
Proceeds from
revolving credit facility
|
|
|
648.0
|
|
|
622.1
|
|
|
963.9
|
|
Repayments of
revolving credit facility
|
|
|
(955.3)
|
|
|
(478.0)
|
|
|
(933.9)
|
|
Payment of financing
costs
|
|
|
(18.5)
|
|
|
—
|
|
|
—
|
|
Proceeds from issuance
of common stock
|
|
|
0.1
|
|
|
0.3
|
|
|
0.7
|
|
Dividends
paid
|
|
|
(39.2)
|
|
|
(37.2)
|
|
|
(35.4)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(5.6)
|
|
|
(3.1)
|
|
|
(4.6)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(261.5)
|
|
|
62.0
|
|
|
(40.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash, Cash Equivalents and Restricted Cash
|
|
|
(8.7)
|
|
|
3.9
|
|
|
4.7
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of the Year
|
|
|
28.4
|
|
|
24.5
|
|
|
19.8
|
|
Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
19.7
|
|
$
|
28.4
|
|
$
|
24.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents, and Restricted Cash, at End of the
Year:
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
14.4
|
|
$
|
21.2
|
|
$
|
19.6
|
|
Restricted
Cash
|
|
|
5.3
|
|
|
7.2
|
|
|
4.9
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
19.7
|
|
$
|
28.4
|
|
$
|
24.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
26.2
|
|
$
|
22.0
|
|
$
|
18.3
|
|
Income tax paid, net
of income tax refunds
|
|
$
|
(16.1)
|
|
$
|
(24.2)
|
|
$
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
24.7
|
|
$
|
8.5
|
|
$
|
4.1
|
|
MATSON, INC.
AND SUBSIDIARIES
|
Total Debt to Net
Debt and Net Income to EBITDA Reconciliations
|
(Unaudited)
|
|
NET DEBT
RECONCILIATION
|
|
|
|
|
|
|
December 31,
|
(In millions)
|
|
2020
|
Total Debt
(1):
|
|
$
|
760.1
|
Less: Cash and
cash equivalents
|
|
|
(14.4)
|
Net Debt
|
|
$
|
745.7
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December 31,
|
|
(In millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Net Income
|
|
$
|
85.6
|
|
$
|
15.6
|
|
$
|
70.0
|
|
Add:
Income taxes
|
|
|
28.8
|
|
|
4.5
|
|
|
24.3
|
|
Add:
Interest expense
|
|
|
4.9
|
|
|
5.6
|
|
|
(0.7)
|
|
Add:
Depreciation and amortization
|
|
|
29.7
|
|
|
26.9
|
|
|
2.8
|
|
Add:
Dry-dock amortization
|
|
|
7.3
|
|
|
8.4
|
|
|
(1.1)
|
|
EBITDA (2)
|
|
$
|
156.3
|
|
$
|
61.0
|
|
$
|
95.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
Ended
|
|
|
|
December 31,
|
|
(In millions)
|
|
2020
|
|
2019
|
|
Change
|
|
Net Income
|
|
$
|
193.1
|
|
$
|
82.7
|
|
$
|
110.4
|
|
Add:
Income taxes
|
|
|
65.9
|
|
|
25.1
|
|
|
40.8
|
|
Add:
Interest expense
|
|
|
27.4
|
|
|
22.5
|
|
|
4.9
|
|
Add:
Depreciation and amortization
|
|
|
112.2
|
|
|
99.7
|
|
|
12.5
|
|
Add:
Dry-dock amortization
|
|
|
25.1
|
|
|
34.3
|
|
|
(9.2)
|
|
EBITDA (2)
|
|
$
|
423.7
|
|
$
|
264.3
|
|
$
|
159.4
|
|
|
|
|
|
|
|
(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.
|
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SOURCE Matson, Inc.