HONOLULU, July 8, 2021 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX) today announces
preliminary second quarter financial results, provides a business
update and announces that its second quarter earnings call date
will be held on July 29, 2021.
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"Matson's Ocean Transportation and Logistics businesses
continued to perform well in the second quarter as the U.S. economy
further recovers from the pandemic," said Chairman and Chief
Executive Officer Matt Cox.
"Within Ocean Transportation, our China service continued to see significant
demand for its expedited CLX and CLX+ ocean services as volume for
e-commerce, garments and other goods remained elevated, and was the
primary driver of the increase in consolidated operating income
year-over-year. Currently in the Transpacific tradelane,
supply chain congestion continues, and consumption trends remain
elevated. We expect these conditions to remain in place and
lead to a high level of demand at least until Lunar New Year in the
first quarter of 2022. As a result of the exceptional level
of demand for our expedited Transpacific services, we recently
announced the initiation of our CCX service as a seasonal string
with Matson-owned vessels from China to the U.S. West Coast with Oakland as
the first call. Consequently, we expect our vessels in the
CLX, CLX+ and CCX to be operating at capacity at least until Lunar
New Year next year."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see strong demand as the local economies further reopen with
meaningfully higher year-over-year volumes compared to the pandemic
volume lows in the second quarter of last year. In Hawaii, we
experienced elevated westbound freight demand as the state's
tourism and economy rebounded sharply from the pandemic lows.
In Logistics, operating income increased year-over-year compared to
the pandemic low operating income achieved in the year ago period
as we continued to see elevated goods consumption and inventory
restocking in addition to favorable supply and demand fundamentals
in our core markets. As a result, Matson expects second
quarter operating income for Ocean Transportation of $197.0 to $202.0
million and Logistics operating income of $12.0 to $13.0
million. We also expect second quarter 2021 net income
and diluted EPS to be $156.9 to
$163.6 million and $3.58 to $3.73,
respectively."
Second Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended June 30,
2021 compared to the three months ended June 30, 2020 and on a FEU basis:
- Hawaii container volume
increased 9.9 percent primarily due to higher retail and
hospitality-related demand due to the reopening of the Hawaii economy compared to the pandemic low in
the year ago period as a result of the state's COVID-19 mitigation
efforts, including restrictions on tourism;
- Alaska volume increased 15.2
percent due to higher northbound volume primarily due to higher
retail-related demand compared to the pandemic low in the year ago
period as a result of the state's COVID-19 mitigation efforts,
higher southbound volume and the addition of volume from the
Alaska-to-Asia Express
service;
- China volume was 59.1 percent
higher primarily due to incremental volume from the CLX+ service in
addition to higher volume in the CLX service as a result of our
increased capacity in the tradelane. The total number of
eastbound voyages in the China
service increased by nine year-over-year;
- Guam volume was 35.7 percent
higher primarily due to higher retail-related demand compared to
the pandemic low in the year ago period as a result of the island's
COVID-19 mitigation measures as well as volume attritutable to a
competitor's schedule issues; and
- Other containers volume increased 33.3 percent primarily due to
higher volume in Okinawa.
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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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Subsequent Event
On July 7, 2021, a subsidiary of
Matson entered into an agreement to terminate the outstanding
operating lease on the Maunalei for approximately
$95.8 million including accrued lease
interest, thereby acquiring the vessel. The Company paid for
the termination with a combination of cash on hand and borrowings
on the revolving credit facility. As a result of the
transaction, the Company expects approximately $6.0 million in lower cash operating costs in the
second half of 2021 as a result of the elimination in lease
expense.
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 July
29, 2021 at 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 second quarter results.
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Date of Conference
Call:
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Thursday, July 29,
2021
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Scheduled
Time:
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4:30 p.m. ET / 1:30
p.m. PT / 10:30 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 August 5, 2021 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
6564633. 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 performance and financial
results, operating income, net income, earnings per share, demand
for our expedited Transpacific services, seasonality of the CCX
service, supply and demand dynamics in the Transpacific tradelane,
supply chain congestion, consumption trends, demand for e-commerce,
garments and other goods, tourism levels, economic growth and
drivers in Hawaii, Alaska and Guam, and the financial effects of the
Maunalei transaction. 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 and regulations, including regulations related to
greenhouse gas emissions and other environmental laws and
regulations; 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 for the year ended December 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:
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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.