HONOLULU, July 29, 2021 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in
the Pacific, today reported net income of $162.5 million, or $3.71 per diluted share, for the quarter ended
June 30, 2021. Net income for
the quarter ended June 30, 2020 was
$32.8 million, or $0.76 per diluted share. Consolidated
revenue for the second quarter 2021 was $874.9 million compared with $524.1 million for the second quarter 2020.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"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, which was the
primary driver of the increase in consolidated operating income
year-over-year. The supply chain environment continues to be
marked by widespread congestion and pressure points at critical
junctures for both ocean and overland transportation. We
remain focused on what Matson does best, which is maintaining
reliable tradelane services and helping our customers in Ocean
Transportation and Logistics manage through this unique and
difficult period of congestion."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see improving 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."
Second Quarter 2021 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the second quarter 2021 was 9.9 percent higher
year-over-year. The increase was 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, partially offset by volume
associated with the dry-docking of a competitor's vessel in the
year ago period. Domestic visitor travel to the state
accelerated since the beginning of the year and the local economy
continued to reopen with COVID-19 vaccinations, leading to a sharp
rebound in Hawaii's tourism
industry and economy. The economic recovery in the state is
on a cautiously optimistic trajectory due to improving tourism and
unemployment trends.
In China, the Company's
container volume in the second quarter 2021 increased 59.1 percent
year-over-year. The increase was 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 of which six were from incremental CLX+ voyages and
three from extra loaders. Volume demand in the quarter was
driven by e-commerce, garments and other goods. Matson
continued to realize a significant rate premium in the second
quarter 2021 and achieved average freight rates that were
considerably higher than in the year ago period. 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, Matson 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 services to be operating at
capacity at least until Lunar New Year next year.
In Guam, the Company's
container volume in the second quarter 2021 increased 35.7 percent
year-over-year primarily due to higher retail-related demand
compared to the pandemic low in the year ago period as well as
volume attributable to a competitor's schedule issues. The
economic recovery trajectory in Guam remains uncertain as the economy recovers
slowly and tourism remains constrained.
In Alaska, the Company's
container volume for the second quarter 2021 increased 15.2 percent
year-over-year due to higher northbound volume primarily due to (i)
higher retail-related demand compared to the pandemic low in the
year ago period, (ii) higher southbound volume and (iii) the
addition of volume from the Alaska-Asia Express service, partially
offset by one less northbound sailing. In the near-term, we
expect improving economic trends in Alaska, but the recovery's trajectory
continues to remain uncertain.
The contribution in the second quarter 2021 from the Company's
SSAT joint venture investment was $12.8
million, or $9.1 million
higher than the second quarter 2020. The increase was driven
by higher lift volume.
Logistics: In the second quarter 2021, operating
income for the Company's Logistics segment was $12.9 million, or $4.0 million higher compared to the pandemic
low operating income achieved in the second quarter 2020. The
increase was due primarily to higher contributions from
transportation brokerage, freight forwarding and supply chain
management as a result of elevated goods consumption and inventory
restocking in addition to favorable supply and demand fundamentals
in our core markets.
Results By
Segment
|
Ocean
Transportation — Three months ended June 30, 2021 compared
with 2020
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
682.9
|
|
$
|
410.8
|
|
$
|
272.1
|
|
66.2
|
%
|
Operating costs and
expenses
|
|
|
(481.9)
|
|
|
(368.5)
|
|
|
(113.4)
|
|
30.8
|
%
|
Operating
income
|
|
$
|
201.0
|
|
$
|
42.3
|
|
$
|
158.7
|
|
375.2
|
%
|
Operating income
margin
|
|
|
29.4
|
%
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
39,800
|
|
|
36,200
|
|
|
3,600
|
|
9.9
|
%
|
Hawaii
automobiles
|
|
|
12,700
|
|
|
8,200
|
|
|
4,500
|
|
54.9
|
%
|
Alaska
containers
|
|
|
19,700
|
|
|
17,100
|
|
|
2,600
|
|
15.2
|
%
|
China
containers
|
|
|
43,600
|
|
|
27,400
|
|
|
16,200
|
|
59.1
|
%
|
Guam
containers
|
|
|
5,700
|
|
|
4,200
|
|
|
1,500
|
|
35.7
|
%
|
Other containers
(2)
|
|
|
5,200
|
|
|
3,900
|
|
|
1,300
|
|
33.3
|
%
|
|
|
|
|
|
|
|
|
|
(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 $272.1 million, or 66.2 percent, during the three
months ended June 30, 2021, compared with the three months
ended June 30, 2020. The increase was primarily due to
higher revenue in China and
Hawaii, higher fuel-related
surcharge revenue and higher revenue in Alaska and Guam.
On a year-over-year 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, partially offset by volume associated with
the dry-docking of a competitor's vessel in the year ago period;
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-Asia Express service, partially offset by one less
northbound sailing; 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;
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 attributable to a
competitor's schedule issues; and Other containers volume increased
33.3 percent primarily due to higher volume in Okinawa.
Ocean Transportation operating income increased $158.7 million during the three months ended
June 30, 2021, compared with the three months ended
June 30, 2020. The increase was primarily due to higher
contributions from the China and
Hawaii services and SSAT,
partially offset by higher vessel operating costs, higher terminal
handling costs and higher depreciation.
The Company's SSAT terminal joint venture investment contributed
$12.8 million during the three months
ended June 30, 2021, compared to a contribution of
$3.7 million during the three months
ended June 30, 2020. The increase was driven by higher
lift volume.
Ocean
Transportation — Six months ended June 30, 2021 compared with
2020
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,243.4
|
|
$
|
811.7
|
|
$
|
431.7
|
|
53.2
|
%
|
Operating costs and
expenses
|
|
|
(928.3)
|
|
|
(761.5)
|
|
|
(166.8)
|
|
21.9
|
%
|
Operating
income
|
|
$
|
315.1
|
|
$
|
50.2
|
|
$
|
264.9
|
|
527.7
|
%
|
Operating income
margin
|
|
|
25.3
|
%
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
75,500
|
|
|
71,700
|
|
|
3,800
|
|
5.3
|
%
|
Hawaii
automobiles
|
|
|
23,400
|
|
|
21,500
|
|
|
1,900
|
|
8.8
|
%
|
Alaska
containers
|
|
|
37,000
|
|
|
35,300
|
|
|
1,700
|
|
4.8
|
%
|
China
containers
|
|
|
84,700
|
|
|
40,300
|
|
|
44,400
|
|
110.2
|
%
|
Guam
containers
|
|
|
10,700
|
|
|
9,100
|
|
|
1,600
|
|
17.6
|
%
|
Other containers
(2)
|
|
|
9,200
|
|
|
8,000
|
|
|
1,200
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
(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 $431.7 million, or 53.2 percent, during the six
months ended June 30, 2021, compared with the six months ended
June 30, 2020. The increase was primarily due to higher
revenue in China, Hawaii and Guam.
On a year-over-year FEU basis, Hawaii container volume increased 5.3 percent
primarily due to higher retail and hospitality-related demand due
to the reopening of the Hawaii
economy compared to the negatively impacted volume in the year ago
period as a result of the pandemic and the state's COVID-19
mitigation efforts, partially offset by volume associated with the
dry-docking of a competitor's vessel in the second quarter of last
year; Alaska volume increased by
4.8 percent due to higher northbound volume primarily due to higher
retail-related demand compared to the negatively impacted volume in
the year ago period as a result of the pandemic and the state's
COVID-19 mitigation efforts, higher southbound volume and the
addition of volume from the Alaska-Asia Express service, partially
offset by two less northbound sailings; China volume was 110.2 percent higher
primarily due to incremental 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 17.6 percent higher primarily
due to higher retail-related demand compared to the negatively
impacted volume in the year ago period as a result of the pandemic
and the island's COVID-19 mitigation measures as well as volume
attributable to a competitor's schedule issues; and Other container
volume increased 15.0 percent primarily due to higher volume in
Okinawa.
Ocean Transportation operating income increased $264.9 million during the six months ended
June 30, 2021, compared with the six months ended June 30, 2020. The increase was primarily
due to higher contributions from the China and Hawaii services and SSAT, partially offset by
higher vessel operating costs, higher terminal handling costs and
higher depreciation.
The Company's SSAT terminal joint venture investment contributed
$22.0 million during the six months
ended June 30, 2021, compared to a contribution of
$7.7 million during the six months
ended June 30, 2020. The
increase was largely attributable to higher lift volume.
Logistics — Three
months ended June 30, 2021 compared with 2020
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
192.0
|
|
$
|
113.3
|
|
$
|
78.7
|
|
69.5
|
%
|
Operating costs and
expenses
|
|
|
(179.1)
|
|
|
(104.4)
|
|
|
(74.7)
|
|
71.6
|
%
|
Operating
income
|
|
$
|
12.9
|
|
$
|
8.9
|
|
$
|
4.0
|
|
44.9
|
%
|
Operating income
margin
|
|
|
6.7
|
%
|
|
7.9
|
%
|
|
|
|
|
|
Logistics revenue increased $78.7
million, or 69.5 percent, during the three months ended
June 30, 2021, compared with the three months ended
June 30, 2020. The increase was primarily due to higher
transportation brokerage revenue.
Logistics operating income increased $4.0
million, or 44.9 percent, for the three months ended
June 30, 2021, compared with the three months ended
June 30, 2020. The increase was primarily due to higher
contributions from transportation brokerage, freight forwarding and
supply chain management.
Logistics — Six
months ended June 30, 2021 compared with 2020
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
343.3
|
|
$
|
226.3
|
|
$
|
117.0
|
|
51.7
|
%
|
Operating costs and
expenses
|
|
|
(324.3)
|
|
|
(212.3)
|
|
|
(112.0)
|
|
52.8
|
%
|
Operating
income
|
|
$
|
19.0
|
|
$
|
14.0
|
|
$
|
5.0
|
|
35.7
|
%
|
Operating income
margin
|
|
|
5.5
|
%
|
|
6.2
|
%
|
|
|
|
|
|
Logistics revenue increased $117.0
million, or 51.7 percent, during the six months ended
June 30, 2021, compared with the six months ended
June 30, 2020. The increase was primarily due to higher
transportation brokerage revenue.
Logistics operating income increased $5.0
million, or 35.7 percent, for the six months ended
June 30, 2021, compared with the six months ended
June 30, 2020. The increase was due primarily to higher
contributions from transportation brokerage, freight forwarding and
supply chain management.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents increased by $3.0 million from $14.4 million at December 31, 2020 to $17.4 million at June 30, 2021.
Matson generated net cash from operating activities of $238.8 million during the six months ended
June 30, 2021, compared to $140.6 million during the six months ended
June 30, 2020. Capital expenditures totaled $101.3 million for the six months ended
June 30, 2021, compared with $50.5 million for the six months ended
June 30, 2020. Total debt decreased by $98.6 million during the six months to
$661.5 million as of
June 30, 2021, of which $596.5 million was classified as long-term
debt.
Under the recently amended debt agreements, as of June 30,
2021 Matson had available borrowings under its revolving credit
facility of $641.9 million and a
leverage ratio per the amended debt agreements of approximately
0.9x.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.30 per share
payable on September 2, 2021 to all shareholders of record as
of the close of business on August 5, 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 second quarter
results.
Date of Conference
Call:
|
Thursday, July 29,
2021
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 10:30 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 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 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 North America. 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, capital expenditures, vessel deployments, duration and
availability of vessel charters, vessel transit times, organic
growth opportunities, lift volumes at SSAT, demand for our
expedited Transpacific services, seasonality of the CCX service,
supply and demand dynamics in the Transpacific tradelane, supply
chain congestion and pressure points, consumption trends, retail
and e-commerce demand, tourism levels, unemployment trends,
economic recovery and drivers in Hawaii, Alaska and Guam, volume levels, 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.
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
(In millions, except per
share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
682.9
|
|
$
|
410.8
|
|
$
|
1,243.4
|
|
$
|
811.7
|
Logistics
|
|
|
192.0
|
|
|
113.3
|
|
|
343.3
|
|
|
226.3
|
Total Operating
Revenue
|
|
|
874.9
|
|
|
524.1
|
|
|
1,586.7
|
|
|
1,038.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(615.6)
|
|
|
(426.3)
|
|
|
(1,160.3)
|
|
|
(874.6)
|
Income from
SSAT
|
|
|
12.8
|
|
|
3.7
|
|
|
22.0
|
|
|
7.7
|
Selling, general and
administrative
|
|
|
(58.2)
|
|
|
(50.3)
|
|
|
(114.3)
|
|
|
(106.9)
|
Total Costs and
Expenses
|
|
|
(661.0)
|
|
|
(472.9)
|
|
|
(1,252.6)
|
|
|
(973.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
213.9
|
|
|
51.2
|
|
|
334.1
|
|
|
64.2
|
Interest
expense
|
|
|
(5.5)
|
|
|
(8.2)
|
|
|
(12.8)
|
|
|
(16.8)
|
Other income
(expense), net
|
|
|
1.5
|
|
|
1.5
|
|
|
2.9
|
|
|
2.1
|
Income before Income
Taxes
|
|
|
209.9
|
|
|
44.5
|
|
|
324.2
|
|
|
49.5
|
Income
taxes
|
|
|
(47.4)
|
|
|
(11.7)
|
|
|
(74.5)
|
|
|
(12.9)
|
Net Income
|
|
$
|
162.5
|
|
$
|
32.8
|
|
$
|
249.7
|
|
$
|
36.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
3.74
|
|
$
|
0.76
|
|
$
|
5.75
|
|
$
|
0.85
|
Diluted Earnings Per
Share
|
|
$
|
3.71
|
|
$
|
0.76
|
|
$
|
5.70
|
|
$
|
0.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43.5
|
|
|
43.1
|
|
|
43.4
|
|
|
43.0
|
Diluted
|
|
|
43.8
|
|
|
43.3
|
|
|
43.8
|
|
|
43.3
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
June 30,
|
|
December 31,
|
(In millions)
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17.4
|
|
$
|
14.4
|
Other current
assets
|
|
|
385.3
|
|
|
291.5
|
Total current
assets
|
|
|
402.7
|
|
|
305.9
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
50.1
|
|
|
48.7
|
Property and
equipment, net
|
|
|
1,715.8
|
|
|
1,689.9
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
186.5
|
|
|
192.0
|
Other long-term
assets
|
|
|
353.3
|
|
|
336.3
|
Total long-term
assets
|
|
|
2,633.5
|
|
|
2,594.7
|
Total
assets
|
|
$
|
3,036.2
|
|
$
|
2,900.6
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
65.0
|
|
$
|
59.2
|
Other current
liabilities
|
|
|
467.3
|
|
|
452.3
|
Total current
liabilities
|
|
|
532.3
|
|
|
511.5
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
581.5
|
|
|
685.6
|
Deferred income
taxes
|
|
|
404.9
|
|
|
389.6
|
Other long-term
liabilities
|
|
|
344.7
|
|
|
352.7
|
Total long-term
liabilities
|
|
|
1,331.1
|
|
|
1,427.9
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
1,172.8
|
|
|
961.2
|
Total liabilities and
shareholders' equity
|
|
$
|
3,036.2
|
|
$
|
2,900.6
|
MATSON, INC.
AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
(In
millions)
|
|
2021
|
|
2020
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
249.7
|
|
$
|
36.6
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
67.9
|
|
|
55.6
|
|
Amortization of
operating lease right of use assets
|
|
|
49.2
|
|
|
35.6
|
|
Deferred income
taxes
|
|
|
15.2
|
|
|
11.4
|
|
Share-based
compensation expense
|
|
|
9.5
|
|
|
6.1
|
|
Income from
SSAT
|
|
|
(22.0)
|
|
|
(7.7)
|
|
Distribution from
SSAT
|
|
|
21.0
|
|
|
7.8
|
|
Other
|
|
|
(1.0)
|
|
|
0.5
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(60.2)
|
|
|
(9.3)
|
|
Deferred dry-docking
payments
|
|
|
(17.4)
|
|
|
(7.6)
|
|
Deferred dry-docking
amortization
|
|
|
12.6
|
|
|
11.8
|
|
Prepaid expenses and
other assets
|
|
|
(38.7)
|
|
|
25.2
|
|
Accounts payable,
accruals and other liabilities
|
|
|
3.7
|
|
|
14.0
|
|
Operating lease
liabilities
|
|
|
(47.1)
|
|
|
(36.0)
|
|
Other long-term
liabilities
|
|
|
(3.6)
|
|
|
(3.4)
|
|
Net cash provided by
operating activities
|
|
|
238.8
|
|
|
140.6
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
—
|
|
|
(16.5)
|
|
Other capital
expenditures
|
|
|
(101.3)
|
|
|
(34.0)
|
|
Proceeds from disposal
of property and equipment
|
|
|
1.7
|
|
|
15.4
|
|
Cash deposits into
Capital Construction Fund
|
|
|
(31.2)
|
|
|
(97.1)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
31.2
|
|
|
97.1
|
|
Net cash used in
investing activities
|
|
|
(99.6)
|
|
|
(35.1)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
—
|
|
|
325.5
|
|
Repayments of
debt
|
|
|
(26.8)
|
|
|
(192.8)
|
|
Proceeds from
revolving credit facility
|
|
|
241.9
|
|
|
411.5
|
|
Repayments of
revolving credit facility
|
|
|
(313.7)
|
|
|
(612.6)
|
|
Payment of financing
costs
|
|
|
(3.0)
|
|
|
(18.5)
|
|
Proceeds from issuance
of capital stock
|
|
|
—
|
|
|
0.1
|
|
Dividends
paid
|
|
|
(20.2)
|
|
|
(19.1)
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(14.4)
|
|
|
(5.5)
|
|
Net cash used in
financing activities
|
|
|
(136.2)
|
|
|
(111.4)
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
|
3.0
|
|
|
(5.9)
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of the Period
|
|
|
19.7
|
|
|
28.4
|
|
Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
22.7
|
|
$
|
22.5
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash, End of the
Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
17.4
|
|
$
|
19.5
|
|
Restricted
Cash
|
|
|
5.3
|
|
|
3.0
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
22.7
|
|
$
|
22.5
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
10.4
|
|
$
|
17.9
|
|
Income tax payments
and (refunds), net
|
|
$
|
75.2
|
|
$
|
(21.0)
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
7.7
|
|
$
|
4.6
|
|
Accrued
dividends
|
|
$
|
13.2
|
|
$
|
10.0
|
|
MATSON, INC.
AND SUBSIDIARIES
|
Total Debt to Net
Debt and Net Income to EBITDA Reconciliations
|
(Unaudited)
|
|
NET DEBT
RECONCILIATION
|
|
|
|
June 30,
|
(In millions)
|
|
2021
|
Total Debt
(1):
|
|
$
|
661.5
|
Less: Cash and
cash equivalents
|
|
|
(17.4)
|
Net Debt
|
|
$
|
644.1
|
EBITDA
RECONCILIATION
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June 30,
|
|
Last Twelve
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Months
|
|
Net Income
|
|
$
|
162.5
|
|
$
|
32.8
|
|
$
|
129.7
|
|
$
|
406.2
|
|
Add:
Income taxes
|
|
|
47.4
|
|
|
11.7
|
|
|
35.7
|
|
|
127.5
|
|
Add:
Interest expense
|
|
|
5.5
|
|
|
8.2
|
|
|
(2.7)
|
|
|
23.4
|
|
Add:
Depreciation and amortization
|
|
|
32.9
|
|
|
27.8
|
|
|
5.1
|
|
|
122.8
|
|
Add:
Dry-dock amortization
|
|
|
6.0
|
|
|
5.7
|
|
|
0.3
|
|
|
25.9
|
|
EBITDA (2)
|
|
$
|
254.3
|
|
$
|
86.2
|
|
$
|
168.1
|
|
$
|
705.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
|
|
|
Net Income
|
|
$
|
249.7
|
|
$
|
36.6
|
|
$
|
213.1
|
|
|
|
|
Add:
Income taxes
|
|
|
74.5
|
|
|
12.9
|
|
|
61.6
|
|
|
|
|
Add:
Interest expense
|
|
|
12.8
|
|
|
16.8
|
|
|
(4.0)
|
|
|
|
|
Add:
Depreciation and amortization
|
|
|
65.2
|
|
|
54.6
|
|
|
10.6
|
|
|
|
|
Add:
Dry-dock amortization
|
|
|
12.6
|
|
|
11.8
|
|
|
0.8
|
|
|
|
|
EBITDA (2)
|
|
$
|
414.8
|
|
$
|
132.7
|
|
$
|
282.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
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
|
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SOURCE Matson, Inc.