HONOLULU, Nov. 3, 2021 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in
the Pacific, today reported net income of $283.2 million, or $6.53 per diluted share, for the quarter ended
September 30, 2021. Net income
for the quarter ended September 30,
2020 was $70.9 million, or
$1.63 per diluted share.
Consolidated revenue for the third quarter 2021 was $1,071.6 million compared with $645.2 million for the third quarter 2020.
"The strong economic and business trends we saw in the second
quarter continued in the third quarter resulting in solid
performance in both Ocean Transportation and Logistics," said
Chairman and Chief Executive Officer Matt
Cox. "Within Ocean Transportation, our China service continued to see significant
demand for its expedited ocean services, including the new CCX
service, as volume for e-commerce, garments and other goods
remained elevated heading into the peak season. Continued
strong demand for the China
service was the primary driver of the increase in consolidated
operating income year-over-year. Currently, supply chain
congestion continues in the Transpacific tradelane with the
combination of ongoing elevated consumption trends, inventory
restocking, and bottlenecks at critical points for both ocean and
overland transportation. We expect these conditions to remain
largely in place at least through mid-year 2022."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see strong demand with higher year-over-year volumes compared to
the largely pandemic-reduced volumes in the third quarter of last
year. In Hawaii, we experienced elevated westbound freight
demand as the state's tourism and economy continued to rebound
sharply from the pandemic lows, although towards the end of the
quarter we experienced a modest negative impact in freight related
to the state's efforts to address the spread of the COVID-19 Delta
variant. In Logistics, operating income increased
year-over-year compared to the operating income achieved in the
year ago period as we continued to see elevated goods consumption,
inventory restocking and favorable supply and demand fundamentals
in our core markets."
Third Quarter 2021 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the third quarter 2021 was 11.5 percent higher
year-over-year. The increase was primarily due to higher
retail and hospitality-related demand due to the continued rebound
in tourism and the Hawaii economy
compared to the pandemic-reduced volume in the year ago
period. Volume in the third quarter 2020 was negatively
impacted by the state's COVID-19 mitigation efforts, including
restrictions on tourism. Domestic visitor travel to the state
remained strong throughout much of the third quarter 2021 until the
end of the quarter when the state's efforts to address the spread
of the COVID-19 Delta variant, including the Governor's request to
defer travel plans, led to a softening in airline passenger
traffic. As a result, we experienced a modest negative impact
in freight demand late in the quarter. In the near-term, the
Hawaii economy may experience a
brief slowdown as a result of the state's response to the COVID-19
Delta variant and the related impacts on tourism trends. In
late October, the Governor announced that non-essential travel to
the state can resume on November 1,
2021.
In China, the Company's
container volume in the third quarter 2021 increased 21.7 percent
year-over-year. The increase was primarily due to volume from
the China-California Express ("CCX") service and volume from an
extra loader. The total number of eastbound voyages in the
China service increased by six
year-over-year of which five were from CCX voyages and one from an
extra loader. Volume demand in the quarter was driven by
e-commerce, garments and other goods. Matson continued to
realize a significant rate premium in the third quarter 2021 and
achieved average freight rates that were considerably higher than
in the year ago period. Currently, supply chain congestion
continues in the Transpacific tradelane with the combination of
ongoing elevated consumption trends, inventory restocking, and
bottlenecks at critical points for both ocean and overland
transportation. We expect these conditions to remain largely
in place at least through mid-year 2022.
In Guam, the Company's
container volume in the third quarter 2021 increased 14.6 percent
year-over-year primarily due to higher retail-related demand
compared to the pandemic-reduced volume in the year ago
period. The economic recovery trajectory in Guam continues to remain uncertain as the
economy recovers slowly and tourism remains constrained.
In Alaska, the Company's
container volume for the third quarter 2021 increased 10.7 percent
year-over-year due to (i) the addition of volume from the
Alaska-Asia Express, (ii) higher northbound volume primarily due to
an additional sailing and higher retail-related demand, and (iii)
higher southbound volume. In the near-term, we expect
improving economic trends in Alaska, but the recovery's trajectory
continues to remain uncertain.
The contribution in the third quarter 2021 from the Company's
SSAT joint venture investment was $13.0 million, or $5.3 million higher than the third quarter
2020. The increase was primarily driven by higher lift
volume.
Logistics: In the third quarter 2021, operating
income for the Company's Logistics segment was $16.0 million, or $4.1 million higher compared to the level
achieved in the third quarter 2020. The increase was due
primarily to higher contributions from supply chain management and
transportation brokerage as a result of elevated goods consumption,
inventory restocking and favorable supply and demand fundamentals
in our core markets.
Results By Segment
Ocean Transportation — Three months ended September 30,
2021 compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
863.5
|
|
$
|
498.3
|
|
$
|
365.2
|
|
73.3
|
%
|
Operating costs and
expenses
|
|
|
(501.6)
|
|
|
(411.8)
|
|
|
(89.8)
|
|
21.8
|
%
|
Operating
income
|
|
$
|
361.9
|
|
$
|
86.5
|
|
$
|
275.4
|
|
318.4
|
%
|
Operating income
margin
|
|
|
41.9
|
%
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
40,600
|
|
|
36,400
|
|
|
4,200
|
|
11.5
|
%
|
Hawaii
automobiles
|
|
|
12,600
|
|
|
12,900
|
|
|
(300)
|
|
(2.3)
|
%
|
Alaska
containers
|
|
|
21,800
|
|
|
19,700
|
|
|
2,100
|
|
10.7
|
%
|
China
containers
|
|
|
46,500
|
|
|
38,200
|
|
|
8,300
|
|
21.7
|
%
|
Guam
containers
|
|
|
5,500
|
|
|
4,800
|
|
|
700
|
|
14.6
|
%
|
Other containers
(2)
|
|
|
5,400
|
|
|
4,600
|
|
|
800
|
|
17.4
|
%
|
|
|
(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 $365.2 million, or 73.3 percent, during the three
months ended September 30, 2021, compared with the three
months ended September 30, 2020. The increase was
primarily due to higher revenue in China, higher fuel-related surcharge revenue,
and higher revenue in Hawaii and
Alaska.
On a year-over-year FEU basis, Hawaii container volume increased 11.5 percent
primarily due to higher retail and hospitality-related demand due
to the continued rebound in tourism and the Hawaii economy compared to the volume in the
year ago period, which was negatively impacted by the state's
COVID-19 mitigation efforts, including restrictions on tourism;
Alaska volume increased 10.7
percent due to the addition of volume from the Alaska-Asia Express,
higher northbound volume primarily due to an additional sailing and
higher retail-related demand, and higher southbound volume;
China volume was 21.7 percent
higher primarily due to CCX volume and volume from an extra loader;
Guam volume was 14.6 percent
higher primarily due to higher retail-related demand; and Other
containers volume increased 17.4 percent primarily due to
higher volume in Okinawa.
Ocean Transportation operating income increased $275.4 million during the three months ended
September 30, 2021, compared with the three months ended
September 30, 2020. The increase was primarily due to a
higher contribution from China.
The Company's SSAT terminal joint venture investment contributed
$13.0 million during the three months
ended September 30, 2021, compared to a contribution of
$7.7 million during the three months
ended September 30, 2020. The increase was primarily
driven by higher lift volume.
Ocean Transportation — Nine months ended September 30,
2021 compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
2,106.9
|
|
$
|
1,310.0
|
|
$
|
796.9
|
|
60.8
|
%
|
Operating costs and
expenses
|
|
|
(1,429.9)
|
|
|
(1,173.3)
|
|
|
(256.6)
|
|
21.9
|
%
|
Operating
income
|
|
$
|
677.0
|
|
$
|
136.7
|
|
$
|
540.3
|
|
395.2
|
%
|
Operating income
margin
|
|
|
32.1
|
%
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
116,100
|
|
|
108,100
|
|
|
8,000
|
|
7.4
|
%
|
Hawaii
automobiles
|
|
|
36,000
|
|
|
34,400
|
|
|
1,600
|
|
4.7
|
%
|
Alaska
containers
|
|
|
58,800
|
|
|
55,000
|
|
|
3,800
|
|
6.9
|
%
|
China
containers
|
|
|
131,200
|
|
|
78,500
|
|
|
52,700
|
|
67.1
|
%
|
Guam
containers
|
|
|
16,200
|
|
|
13,900
|
|
|
2,300
|
|
16.5
|
%
|
Other containers
(2)
|
|
|
14,600
|
|
|
12,600
|
|
|
2,000
|
|
15.9
|
%
|
|
|
(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 $796.9 million, or 60.8 percent, during the nine
months ended September 30, 2021, compared with the nine months
ended September 30, 2020. The increase was primarily due
to higher revenue in China and
Hawaii, higher fuel-related
surcharge revenue and higher revenue in Alaska.
On a year-over-year FEU basis, Hawaii container volume increased 7.4 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
6.9 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;
China volume was 67.1 percent
higher primarily due to incremental volume from the CLX+ service,
higher volume on the CLX service as a result of increased capacity
in the tradelane, and the addition of volume from the CCX service;
Guam volume was 16.5 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; and
Other container volume increased 15.9 percent primarily due to
higher volume in Okinawa.
Ocean Transportation operating income increased $540.3 million during the nine months ended
September 30, 2021, compared with the nine months ended
September 30, 2020. The
increase was primarily due to a higher contribution from
China.
The Company's SSAT terminal joint venture investment contributed
$35.0 million during the nine months
ended September 30, 2021, compared to a contribution of
$15.4 million during the nine months
ended September 30, 2020. The increase was primarily
driven by higher lift volume.
Logistics — Three months ended September 30, 2021
compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
208.1
|
|
$
|
146.9
|
|
$
|
61.2
|
|
41.7
|
%
|
Operating costs and
expenses
|
|
|
(192.1)
|
|
|
(135.0)
|
|
|
(57.1)
|
|
42.3
|
%
|
Operating
income
|
|
$
|
16.0
|
|
$
|
11.9
|
|
$
|
4.1
|
|
34.5
|
%
|
Operating income
margin
|
|
|
7.7
|
%
|
|
8.1
|
%
|
|
|
|
|
|
Logistics revenue increased $61.2
million, or 41.7 percent, during the three months ended
September 30, 2021, compared with the three months ended
September 30, 2020. The increase was primarily due to
higher transportation brokerage and supply chain management
revenue.
Logistics operating income increased $4.1
million, or 34.5 percent, for the three months ended
September 30, 2021, compared with the three months ended
September 30, 2020. The increase was primarily due to
higher contributions from supply chain management and
transportation brokerage.
Logistics — Nine months ended September 30, 2021
compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
551.4
|
|
$
|
373.2
|
|
$
|
178.2
|
|
47.7
|
%
|
Operating costs and
expenses
|
|
|
(516.4)
|
|
|
(347.3)
|
|
|
(169.1)
|
|
48.7
|
%
|
Operating
income
|
|
$
|
35.0
|
|
$
|
25.9
|
|
$
|
9.1
|
|
35.1
|
%
|
Operating income
margin
|
|
|
6.3
|
%
|
|
6.9
|
%
|
|
|
|
|
|
Logistics revenue increased $178.2
million, or 47.7 percent, during the nine months ended
September 30, 2021, compared with the nine months ended
September 30, 2020. The increase was primarily due to
higher transportation brokerage and supply chain management
revenue.
Logistics operating income increased $9.1
million, or 35.1 percent, for the nine months ended
September 30, 2021, compared with the nine months ended
September 30, 2020. The increase was due primarily to
higher contributions from transportation brokerage, supply chain
management, and freight forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents increased by $61.5 million from $14.4 million at December 31, 2020 to $75.9 million at September 30,
2021. Matson generated net cash from operating activities of
$583.3 million during the nine
months ended September 30, 2021, compared to $270.8 million during the nine months ended
September 30, 2020. Capital expenditures totaled
$244.7 million for the nine
months ended September 30, 2021, compared with $111.3 million for the nine months ended
September 30, 2020. The increase in capital expenditures
was primarily due to the lease termination payment of $95.8 million for Maunalei. Total
debt decreased by $112.9 million
during the nine months to $647.2 million as of September 30,
2021, of which $582.2 million
was classified as long-term debt.
Under the recently amended debt agreements, as of
September 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 0.6x.
During the third quarter of 2021, Matson repurchased
approximately 1.5 million shares for a total cost of $115.7 million. From October 1, 2021 through November 2, 2021, Matson repurchased an
additional approximately 0.4 million shares for a total cost of
$33.1 million. As of
November 2, 2021, the Company had
approximately 1.1 million shares remaining on its share repurchase
program.
On July 7, 2021, a subsidiary of
Matson entered into an agreement to terminate the outstanding
operating lease on Maunalei for $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.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.30 per share
payable on December 2, 2021 to all shareholders of record as
of the close of business on November 11, 2021.
Teleconference and Webcast
A conference call is scheduled on November 3, 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 third quarter results.
|
|
Date of Conference
Call:
|
Wednesday, November
3, 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 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 November 10, 2021 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
4158606. 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; vessel transit
times; cargo availability times; demand for our expedited
Transpacific services; duration of the CCX service; supply and
demand conditions in the Transpacific tradelane; supply chain
congestion; consumption trends; retail and e-commerce demand;
inventory restocking conditions; tourism and visitor levels;
unemployment trends; economic recovery and drivers in Hawaii, Alaska and Guam; volume trends; impact of the COVID-19
Delta variant; lift activity at SSAT; goals, progress, expectations
or reporting with respect to corporate responsibility,
sustainability, environmental matters, including greenhouse gas
emission reduction goals and the costs and timing of liquefied
natural gas ("LNG") installations on certain vessels, employees,
policy, and procurement; 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 availability of required
fuels, LNG, or carbon neutral fuels and technologies; 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
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
September 30,
|
(In millions, except per
share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
863.5
|
|
$
|
498.3
|
|
$
|
2,106.9
|
|
$
|
1,310.0
|
Logistics
|
|
|
208.1
|
|
|
146.9
|
|
|
551.4
|
|
|
373.2
|
Total Operating
Revenue
|
|
|
1,071.6
|
|
|
645.2
|
|
|
2,658.3
|
|
|
1,683.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(649.3)
|
|
|
(495.8)
|
|
|
(1,809.6)
|
|
|
(1,370.4)
|
Income from
SSAT
|
|
|
13.0
|
|
|
7.7
|
|
|
35.0
|
|
|
15.4
|
Selling, general and
administrative
|
|
|
(57.4)
|
|
|
(58.7)
|
|
|
(171.7)
|
|
|
(165.6)
|
Total Costs and
Expenses
|
|
|
(693.7)
|
|
|
(546.8)
|
|
|
(1,946.3)
|
|
|
(1,520.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
377.9
|
|
|
98.4
|
|
|
712.0
|
|
|
162.6
|
Interest
expense
|
|
|
(5.1)
|
|
|
(5.7)
|
|
|
(17.9)
|
|
|
(22.5)
|
Other income
(expense), net
|
|
|
1.8
|
|
|
2.4
|
|
|
4.7
|
|
|
4.5
|
Income before Income
Taxes
|
|
|
374.6
|
|
|
95.1
|
|
|
698.8
|
|
|
144.6
|
Income
taxes
|
|
|
(91.4)
|
|
|
(24.2)
|
|
|
(165.9)
|
|
|
(37.1)
|
Net Income
|
|
$
|
283.2
|
|
$
|
70.9
|
|
$
|
532.9
|
|
$
|
107.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
6.60
|
|
$
|
1.65
|
|
$
|
12.31
|
|
$
|
2.50
|
Diluted Earnings Per
Share
|
|
$
|
6.53
|
|
$
|
1.63
|
|
$
|
12.19
|
|
$
|
2.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42.9
|
|
|
43.1
|
|
|
43.3
|
|
|
43.0
|
Diluted
|
|
|
43.4
|
|
|
43.5
|
|
|
43.7
|
|
|
43.4
|
MATSON, INC.
AND SUBSIDIARIES Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
(In millions)
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
75.9
|
|
$
|
14.4
|
Other current
assets
|
|
|
405.8
|
|
|
291.5
|
Total current
assets
|
|
|
481.7
|
|
|
305.9
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
37.2
|
|
|
48.7
|
Property and
equipment, net
|
|
|
1,826.8
|
|
|
1,689.9
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
183.8
|
|
|
192.0
|
Other long-term
assets
|
|
|
365.5
|
|
|
336.3
|
Total long-term
assets
|
|
|
2,741.1
|
|
|
2,594.7
|
Total
assets
|
|
$
|
3,222.8
|
|
$
|
2,900.6
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
65.0
|
|
$
|
59.2
|
Other current
liabilities
|
|
|
482.3
|
|
|
452.3
|
Total current
liabilities
|
|
|
547.3
|
|
|
511.5
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
567.5
|
|
|
685.6
|
Deferred income
taxes
|
|
|
420.0
|
|
|
389.6
|
Other long-term
liabilities
|
|
|
343.2
|
|
|
352.7
|
Total long-term
liabilities
|
|
|
1,330.7
|
|
|
1,427.9
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
1,344.8
|
|
|
961.2
|
Total liabilities and
shareholders' equity
|
|
$
|
3,222.8
|
|
$
|
2,900.6
|
MATSON, INC.
AND SUBSIDIARIES Condensed Consolidated Statements of
Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(In
millions)
|
|
2021
|
|
2020
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
532.9
|
|
$
|
107.5
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
100.9
|
|
|
84.5
|
|
Amortization of
operating lease right of use assets
|
|
|
73.9
|
|
|
53.1
|
|
Deferred income
taxes
|
|
|
30.3
|
|
|
33.5
|
|
Share-based
compensation expense
|
|
|
14.2
|
|
|
12.0
|
|
Income from
SSAT
|
|
|
(35.0)
|
|
|
(15.4)
|
|
Distribution from
SSAT
|
|
|
46.9
|
|
|
37.9
|
|
Other
|
|
|
(1.1)
|
|
|
0.5
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(75.2)
|
|
|
(28.9)
|
|
Deferred dry-docking
payments
|
|
|
(25.8)
|
|
|
(11.1)
|
|
Deferred dry-docking
amortization
|
|
|
18.0
|
|
|
17.8
|
|
Prepaid expenses and
other assets
|
|
|
(46.7)
|
|
|
19.6
|
|
Accounts payable,
accruals and other liabilities
|
|
|
30.2
|
|
|
24.0
|
|
Operating lease
liabilities
|
|
|
(72.1)
|
|
|
(53.7)
|
|
Other long-term
liabilities
|
|
|
(8.1)
|
|
|
(10.5)
|
|
Net cash provided by
operating activities
|
|
|
583.3
|
|
|
270.8
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
—
|
|
|
(57.8)
|
|
Other capital
expenditures
|
|
|
(244.7)
|
|
|
(53.5)
|
|
Proceeds from disposal
of property and equipment
|
|
|
2.2
|
|
|
15.7
|
|
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
|
|
|
(242.5)
|
|
|
(95.6)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
—
|
|
|
325.5
|
|
Repayments of
debt
|
|
|
(41.1)
|
|
|
(204.2)
|
|
Proceeds from
revolving credit facility
|
|
|
304.3
|
|
|
547.4
|
|
Repayments of
revolving credit facility
|
|
|
(376.1)
|
|
|
(803.5)
|
|
Payment of financing
costs
|
|
|
(3.0)
|
|
|
(18.5)
|
|
Proceeds from issuance
of capital stock
|
|
|
—
|
|
|
0.1
|
|
Dividends
paid
|
|
|
(33.3)
|
|
|
(29.1)
|
|
Repurchase of Matson
common stock
|
|
|
(115.7)
|
|
|
—
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(14.4)
|
|
|
(5.6)
|
|
Net cash used in
financing activities
|
|
|
(279.3)
|
|
|
(187.9)
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
|
61.5
|
|
|
(12.7)
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of the Period
|
|
|
19.7
|
|
|
28.4
|
|
Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
81.2
|
|
$
|
15.7
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash, End of the
Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
75.9
|
|
$
|
12.7
|
|
Restricted
Cash
|
|
|
5.3
|
|
|
3.0
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
81.2
|
|
$
|
15.7
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
15.3
|
|
$
|
22.4
|
|
Income tax payments
and (refunds), net
|
|
$
|
162.1
|
|
$
|
(18.0)
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
5.6
|
|
$
|
5.9
|
|
MATSON, INC.
AND SUBSIDIARIES Total Debt to Net Debt and Net Income to
EBITDA Reconciliations (Unaudited)
|
|
NET DEBT
RECONCILIATION
|
|
|
|
|
|
|
September 30,
|
(In millions)
|
|
2021
|
Total Debt
(1):
|
|
$
|
647.2
|
Less: Cash and
cash equivalents
|
|
|
(75.9)
|
Net Debt
|
|
$
|
571.3
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September 30,
|
|
Last Twelve
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Months
|
|
Net Income
|
|
$
|
283.2
|
|
$
|
70.9
|
|
$
|
212.3
|
|
$
|
618.5
|
|
Add:
Income taxes
|
|
|
91.4
|
|
|
24.2
|
|
|
67.2
|
|
|
194.7
|
|
Add:
Interest expense
|
|
|
5.1
|
|
|
5.7
|
|
|
(0.6)
|
|
|
22.8
|
|
Add:
Depreciation and amortization
|
|
|
32.7
|
|
|
27.9
|
|
|
4.8
|
|
|
127.6
|
|
Add:
Dry-dock amortization
|
|
|
5.4
|
|
|
6.0
|
|
|
(0.6)
|
|
|
25.3
|
|
EBITDA (2)
|
|
$
|
417.8
|
|
$
|
134.7
|
|
$
|
283.1
|
|
$
|
988.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Net Income
|
|
$
|
532.9
|
|
$
|
107.5
|
|
$
|
425.4
|
|
Add:
Income taxes
|
|
|
165.9
|
|
|
37.1
|
|
|
128.8
|
|
Add:
Interest expense
|
|
|
17.9
|
|
|
22.5
|
|
|
(4.6)
|
|
Add:
Depreciation and amortization
|
|
|
97.9
|
|
|
82.5
|
|
|
15.4
|
|
Add:
Dry-dock amortization
|
|
|
18.0
|
|
|
17.8
|
|
|
0.2
|
|
EBITDA (2)
|
|
$
|
832.6
|
|
$
|
267.4
|
|
$
|
565.2
|
|
|
|
(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
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/matson-inc-announces-third-quarter-2021-results-301415686.html
SOURCE Matson, Inc.