HONOLULU, Feb. 17, 2022 /PRNewswire/
-- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a
leading U.S. carrier in the Pacific, today reported net income of
$394.5 million, or $9.39 per diluted share, for the quarter ended
December 31, 2021. Net income
for the quarter ended December 31,
2020 was $85.6 million, or
$1.96 per diluted share.
Consolidated revenue for the fourth quarter 2021 was $1,267.0 million compared with $700.1 million for the fourth quarter
2020.
For the twelve months ended December 31, 2021, Matson reported net income of
$927.4 million, or $21.47 per diluted share compared with
$193.1 million, or $4.44 per diluted share in 2020.
Consolidated revenue for the twelve month period ended December 31, 2021 was $3,925.3 million, compared with $2,383.3 million in 2020.
"Matson finished off a strong year with continued improvement in
economic and business trends in our markets driving 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 as volume for e-commerce,
garments and other goods remained elevated. Continued strong
demand for the China service was
the primary driver of the increase in consolidated operating income
year-over-year. Supply chain congestion remains the current
issue in the Transpacific tradelane due to ongoing elevated
consumption trends, U.S. domestic supply chain constraints, and
inventory restocking. For 2022, we expect these conditions to
remain largely in place through at least the October peak season
and expect elevated demand for our China service for most of the
year."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see strong demand with higher year-over-year volumes, including
the benefit of an extra week, compared to the largely
pandemic-reduced volumes in the year ago period. In Hawaii,
we experienced elevated westbound freight demand as the state's
tourism and economy continued to rebound from the pandemic lows and
the slowdown in tourism at the beginning of the quarter as a result
of 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."
Fourth Quarter 2021 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the fourth quarter 2021 was 10.4 percent higher
year-over-year. The increase was primarily due to (i) higher
retail- and hospitality-related demand due to the continued rebound
in tourism and the Hawaii economy
and (ii) the benefit of an extra week, compared to the
pandemic-reduced volume in the year ago period. Volume
in the fourth quarter 2020 was negatively impacted by the state's
COVID-19 mitigation efforts, including restrictions on
tourism. Tourism and the Hawaii economy continued to rebound in the
fourth quarter 2021 despite a softening in airline passenger
traffic early in the quarter due to the state's efforts to address
the spread of the COVID-19 Delta variant. In the near-term,
we are cautiously optimistic on further economic recovery in
Hawaii primarily due to
improvement in the unemployment rate and increasing tourism
traffic, including international visitors later in the year, but
incremental waves of COVID-19 variants present the possibility of
further economic slowdowns.
In China, the Company's
container volume in the fourth quarter 2021 increased 32.7 percent
year-over-year. The increase was primarily due to volume from
the China-California Express ("CCX") service and the benefit of an
extra week. The total number of eastbound voyages in the
China service, including the
impact of an extra week, increased by nine year-over-year, of which
eight were CCX voyages and one was a CLX voyage. Volume
demand in the quarter was driven by e-commerce, garments and other
goods. Matson continued to realize a significant rate premium
over the Shanghai Containerized Freight Index in the fourth quarter
2021 and achieved average freight rates that were considerably
higher than in the year ago period. Supply chain congestion
remains the current issue in the Transpacific tradelane due to
ongoing elevated consumption trends, U.S. domestic supply chain
constraints, and inventory restocking. For 2022, we expect
these conditions to remain largely in place through at least the
October peak season and expect elevated demand for our China service for most of the year.
In Guam, the Company's
container volume in the fourth quarter 2021 increased 14.0 percent
year-over-year primarily due to higher retail-related demand
compared to the pandemic-reduced volume in the year ago
period. In the near-term, we are cautiously optimistic on
further economic growth in Guam as
tourism traffic improves as the year progresses.
In Alaska, the Company's
container volume for the fourth quarter 2021 increased 10.2 percent
year-over-year primarily due to (i) the increase in volume
from the Alaska-Asia Express ("AAX"), (ii) the benefit of an extra
week, 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 fourth quarter 2021 from the Company's
SSAT joint venture investment was $21.3 million, or $10.4 million higher than the fourth quarter
2020. The increase was primarily driven by higher other
terminal revenue and higher revenue per lift.
Logistics: In the fourth quarter 2021, operating
income for the Company's Logistics segment was $14.8 million, or $5.2 million higher compared to the
level achieved in the fourth 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 December 31,
2021 compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,025.9
|
|
$
|
543.9
|
|
$
|
482.0
|
|
88.6
|
%
|
Operating costs and
expenses
|
|
|
(565.2)
|
|
|
(435.8)
|
|
|
(129.4)
|
|
29.7
|
%
|
Operating
income
|
|
$
|
460.7
|
|
$
|
108.1
|
|
$
|
352.6
|
|
326.2
|
%
|
Operating income
margin
|
|
|
44.9
|
%
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
41,500
|
|
|
37,600
|
|
|
3,900
|
|
10.4
|
%
|
Hawaii
automobiles
|
|
|
10,600
|
|
|
12,200
|
|
|
(1,600)
|
|
(13.1)
|
%
|
Alaska
containers
|
|
|
19,400
|
|
|
17,600
|
|
|
1,800
|
|
10.2
|
%
|
China
containers
|
|
|
53,600
|
|
|
40,400
|
|
|
13,200
|
|
32.7
|
%
|
Guam
containers
|
|
|
5,700
|
|
|
5,000
|
|
|
700
|
|
14.0
|
%
|
Other containers
(2)
|
|
|
5,600
|
|
|
4,900
|
|
|
700
|
|
14.3
|
%
|
|
|
(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 $482.0 million, or 88.6 percent, during
the three months ended December 31, 2021, compared with the
three months ended December 31, 2020. The increase was
primarily due to higher revenue in China, higher fuel-related surcharge revenue,
and higher revenue in Hawaii and
Alaska. The higher revenue in China was primarily due to considerably higher
average freight rates and higher volume. The higher revenue
in Hawaii and Alaska was primarily the result of higher
volume.
On a year-over-year FEU basis, Hawaii container volume increased 10.4
percent primarily due to (i) higher retail and hospitality-related
demand due to the continued rebound in tourism and the Hawaii economy and (ii) the benefit of an
extra week, 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 10.2 percent primarily
due to the increase in volume from the AAX, the benefit of an extra
week, and higher southbound volume; China volume was 32.7 percent higher
primarily due to CCX volume and the benefit of an extra week;
Guam volume was
14.0 percent higher primarily due to higher
retail-related demand compared to the pandemic-reduced volume in
the year ago period; and Other containers volume increased
14.3 percent primarily due to the addition of China-Auckland
Express volume in the South Pacific.
Ocean Transportation operating income increased $352.6 million during the three months ended
December 31, 2021, compared with the three months ended
December 31, 2020. The increase was primarily due to
considerably higher average freight rates and higher volume in
China, partially offset by higher
operating costs and expenses primarily due to the CCX service and
higher incremental costs associated with the CLX+ service.
The Company's SSAT terminal joint venture investment contributed
$21.3 million during the three months
ended December 31, 2021, compared to a contribution of
$10.9 million during the three months
ended December 31, 2020. The increase was primarily
driven by higher other terminal revenue and higher revenue per
lift.
Ocean Transportation — Year ended December 31, 2021
compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
3,132.8
|
|
$
|
1,853.9
|
|
$
|
1,278.9
|
|
69.0
|
%
|
Operating costs and
expenses
|
|
|
(1,995.1)
|
|
|
(1,609.1)
|
|
|
(386.0)
|
|
24.0
|
%
|
Operating
income
|
|
$
|
1,137.7
|
|
$
|
244.8
|
|
$
|
892.9
|
|
364.7
|
%
|
Operating income
margin
|
|
|
36.3
|
%
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
157,600
|
|
|
145,700
|
|
|
11,900
|
|
8.2
|
%
|
Hawaii
automobiles
|
|
|
46,600
|
|
|
46,600
|
|
|
—
|
|
0.0
|
%
|
Alaska
containers
|
|
|
78,200
|
|
|
72,600
|
|
|
5,600
|
|
7.7
|
%
|
China
containers
|
|
|
184,800
|
|
|
118,900
|
|
|
65,900
|
|
55.4
|
%
|
Guam
containers
|
|
|
21,900
|
|
|
18,900
|
|
|
3,000
|
|
15.9
|
%
|
Other containers
(2)
|
|
|
20,200
|
|
|
17,500
|
|
|
2,700
|
|
15.4
|
%
|
|
|
(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 $1,278.9 million, or 69.0 percent, during
the year ended December 31, 2021, compared with the year ended
December 31, 2020. The increase was primarily due to
higher revenue in China and
Hawaii, higher fuel-related
surcharge revenue, and higher revenue in Alaska. The higher
revenue in China was primarily due
to considerably higher average freight rates and higher
volume. The higher revenue in Hawaii and Alaska was primarily the result of higher
volume.
On a year-over-year FEU basis, Hawaii container volume increased
8.2 percent primarily due to (a) 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 and (b)
the benefit of an extra week, 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 7.7 percent due to (i) the increase
in volume from the AAX, (ii) 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, (iii) higher southbound
volume, and (iv) the benefit of an extra week; China volume was 55.4 percent higher
primarily due to (A) incremental volume from the CLX+ service, (B)
the addition of volume from the CCX service, (C) higher volume on
the CLX service as a result of increased capacity in the tradelane,
and (D) the benefit of an extra week; Guam volume was
15.9 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
15.4 percent primarily due to higher volume in Okinawa and the
addition of China-Auckland Express volume in the South
Pacific.
Ocean Transportation operating income increased
$892.9 million during the year
ended December 31, 2021, compared with the year ended
December 31, 2020. The increase was primarily due to
considerably higher average freight rates and higher volume in
China, partially offset by higher
operating costs and expenses primarily due to the CLX+ and CCX
services.
The Company's SSAT terminal joint venture investment
contributed $56.3 million during the
year ended December 31, 2021, compared to a contribution of
$26.3 million during the year
ended December 31, 2020. The increase was primarily
driven by higher lift volume and higher other terminal
revenue.
Logistics — Three months ended December 31, 2021
compared with 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
241.1
|
|
$
|
156.2
|
|
$
|
84.9
|
|
54.4
|
%
|
Operating costs and
expenses
|
|
|
(226.3)
|
|
|
(146.6)
|
|
|
(79.7)
|
|
54.4
|
%
|
Operating
income
|
|
$
|
14.8
|
|
$
|
9.6
|
|
$
|
5.2
|
|
54.2
|
%
|
Operating income
margin
|
|
|
6.1
|
%
|
|
6.1
|
%
|
|
|
|
|
|
Logistics revenue increased $84.9
million, or 54.4 percent, during the three months ended
December 31, 2021, compared with the three months ended
December 31, 2020. The increase was primarily due to
higher transportation brokerage and supply chain management
revenue.
Logistics operating income increased $5.2
million, or 54.2 percent, for the three months ended
December 31, 2021, compared with the three months ended
December 31, 2020. The increase was primarily due to
higher contributions from supply chain management and
transportation brokerage.
Logistics — Year ended December 31, 2021 compared with
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(Dollars in millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Logistics
revenue
|
|
$
|
792.5
|
|
$
|
529.4
|
|
$
|
263.1
|
|
49.7
|
%
|
Operating costs and
expenses
|
|
|
(742.7)
|
|
|
(493.9)
|
|
|
(248.8)
|
|
50.4
|
%
|
Operating
income
|
|
$
|
49.8
|
|
$
|
35.5
|
|
$
|
14.3
|
|
40.3
|
%
|
Operating income
margin
|
|
|
6.3
|
%
|
|
6.7
|
%
|
|
|
|
|
|
Logistics revenue increased $263.1
million, or 49.7 percent, during the year ended
December 31, 2021, compared with the year ended
December 31, 2020. The increase was primarily due to
higher transportation brokerage and supply chain management
revenue.
Logistics operating income increased $14.3 million, or 40.3 percent, for the year
ended December 31, 2021, compared with the year ended
December 31, 2020. The increase was due primarily to
higher contributions from supply chain management, transportation
brokerage and freight forwarding.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents increased by $268.0 million from $14.4 million at December 31, 2020 to $282.4 million at
December 31, 2021. Matson generated net cash from
operating activities of $984.1 million during the year ended
December 31, 2021, compared to $429.8 million during the year ended
December 31, 2020. Capital expenditures totaled
$325.3 million for the year
ended December 31, 2021, compared with $192.3 million for the year ended
December 31, 2020. The increase in capital expenditures
was primarily due to the lease termination payment of $95.8 million for Maunalei and the
purchase of equipment to support our new China tradelane services. Total debt
decreased by $131.1 million
during the year to $629.0 million as of December 31, 2021,
of which $564.0 million was
classified as long-term debt. As of December 31, 2021
Matson had available borrowings under its revolving credit facility
of $642.0 million and a leverage
ratio per the amended debt agreements of approximately
0.5x.
During the fourth quarter and full year 2021, Matson repurchased
approximately 1.0 million shares and 2.5 million shares for a
total cost of $84.5 million and
$200.1 million, respectively.
From January 3, 2022 through
February 16, 2022, Matson repurchased
an additional approximately 0.3 million shares for a total
cost of $30.5 million. On
January 27, 2022 the Company
announced an increase of three million shares in its existing share
repurchase program.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.30 per share
payable on March 3, 2022 to all shareholders of record as of
the close of business on February 10, 2022.
Teleconference and Webcast
A conference call is scheduled on February 17, 2022 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 fourth quarter
results.
|
|
Date of Conference
Call:
|
Thursday, February
17, 2022
|
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 February 24, 2022 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
3023619. 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.
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 transit times; demand for our
China services; duration of the
CCX service; supply chain congestion; supply chain constraints;
consumption trends; retail and e-commerce demand; inventory
restocking conditions; timing and level of industry normalization;
tourism and visitor levels; unemployment trends; economic recovery
and drivers in Hawaii,
Alaska and Guam; volume trends; impact of COVID-19 and
its variants; lift activity at SSAT; import volume into U.S. West
Coast; the costs and timing of liquefied natural gas installations
on certain vessels; refleeting initiatives; cash flow expectations
and uses of cash and cash flows; debt reduction; return of capital;
capital allocation plans; payback on new equipment purchases; and
tax deductions and effective tax rate. 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, the
availability of required fuels, and our ability to collect
fuel-related surcharges; 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
|
|
Years Ended
|
|
|
December 31,
|
|
December 31,
|
(In millions, except per
share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
1,025.9
|
|
$
|
543.9
|
|
$
|
3,132.8
|
|
$
|
1,853.9
|
Logistics
|
|
|
241.1
|
|
|
156.2
|
|
|
792.5
|
|
|
529.4
|
Total Operating
Revenue
|
|
|
1,267.0
|
|
|
700.1
|
|
|
3,925.3
|
|
|
2,383.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(748.0)
|
|
|
(533.9)
|
|
|
(2,557.6)
|
|
|
(1,904.3)
|
Income from
SSAT
|
|
|
21.3
|
|
|
10.9
|
|
|
56.3
|
|
|
26.3
|
Selling, general and
administrative
|
|
|
(64.8)
|
|
|
(59.4)
|
|
|
(236.5)
|
|
|
(225.0)
|
Total Costs and
Expenses
|
|
|
(791.5)
|
|
|
(582.4)
|
|
|
(2,737.8)
|
|
|
(2,103.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
475.5
|
|
|
117.7
|
|
|
1,187.5
|
|
|
280.3
|
Interest
expense
|
|
|
(4.7)
|
|
|
(4.9)
|
|
|
(22.6)
|
|
|
(27.4)
|
Other income
(expense), net
|
|
|
1.7
|
|
|
1.6
|
|
|
6.4
|
|
|
6.1
|
Income before Income
Taxes
|
|
|
472.5
|
|
|
114.4
|
|
|
1,171.3
|
|
|
259.0
|
Income
taxes
|
|
|
(78.0)
|
|
|
(28.8)
|
|
|
(243.9)
|
|
|
(65.9)
|
Net Income
|
|
$
|
394.5
|
|
$
|
85.6
|
|
$
|
927.4
|
|
$
|
193.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
9.51
|
|
$
|
1.99
|
|
$
|
21.67
|
|
$
|
4.48
|
Diluted Earnings Per
Share
|
|
$
|
9.39
|
|
$
|
1.96
|
|
$
|
21.47
|
|
$
|
4.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
41.5
|
|
|
43.1
|
|
|
42.8
|
|
|
43.1
|
Diluted
|
|
|
42.0
|
|
|
43.7
|
|
|
43.2
|
|
|
43.5
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(In millions)
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
282.4
|
|
$
|
14.4
|
Other current
assets
|
|
|
422.1
|
|
|
291.5
|
Total current
assets
|
|
|
704.5
|
|
|
305.9
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
58.7
|
|
|
48.7
|
Property and
equipment, net
|
|
|
1,878.3
|
|
|
1,689.9
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
181.1
|
|
|
192.0
|
Other long-term
assets
|
|
|
542.7
|
|
|
336.3
|
Total long-term
assets
|
|
|
2,988.6
|
|
|
2,594.7
|
Total
assets
|
|
$
|
3,693.1
|
|
$
|
2,900.6
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
65.0
|
|
$
|
59.2
|
Other current
liabilities
|
|
|
547.4
|
|
|
452.3
|
Total current
liabilities
|
|
|
612.4
|
|
|
511.5
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
549.7
|
|
|
685.6
|
Deferred income
taxes
|
|
|
425.2
|
|
|
389.6
|
Other long-term
liabilities
|
|
|
438.4
|
|
|
352.7
|
Total long-term
liabilities
|
|
|
1,413.3
|
|
|
1,427.9
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
1,667.4
|
|
|
961.2
|
Total liabilities and
shareholders' equity
|
|
$
|
3,693.1
|
|
$
|
2,900.6
|
MATSON, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
(In millions)
|
|
2021
|
|
2020
|
|
2019
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
927.4
|
|
$
|
193.1
|
|
$
|
82.7
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
135.9
|
|
|
114.9
|
|
|
100.4
|
|
Amortization of
operating lease right of use assets
|
|
|
103.3
|
|
|
74.8
|
|
|
60.7
|
|
Deferred income
taxes
|
|
|
33.2
|
|
|
52.1
|
|
|
23.6
|
|
(Gain) Loss on
disposal of property and equipment
|
|
|
(0.8)
|
|
|
2.8
|
|
|
(1.4)
|
|
Share-based
compensation expense
|
|
|
19.3
|
|
|
18.8
|
|
|
11.3
|
|
Income from
SSAT
|
|
|
(56.3)
|
|
|
(26.3)
|
|
|
(20.8)
|
|
Distributions from
SSAT
|
|
|
46.9
|
|
|
55.4
|
|
|
25.2
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(90.3)
|
|
|
(48.0)
|
|
|
17.8
|
|
Deferred dry-docking
payments
|
|
|
(36.3)
|
|
|
(16.8)
|
|
|
(25.9)
|
|
Deferred dry-docking
amortization
|
|
|
24.3
|
|
|
25.1
|
|
|
34.3
|
|
Prepaid expenses and
other assets
|
|
|
(48.1)
|
|
|
21.9
|
|
|
24.5
|
|
Accounts payable,
accruals and other liabilities
|
|
|
39.6
|
|
|
44.8
|
|
|
(13.9)
|
|
Operating lease
liabilities
|
|
|
(99.7)
|
|
|
(75.9)
|
|
|
(59.9)
|
|
Other long-term
liabilities
|
|
|
(14.3)
|
|
|
(6.9)
|
|
|
(9.8)
|
|
Net cash provided by
operating activities
|
|
|
984.1
|
|
|
429.8
|
|
|
248.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(14.9)
|
|
|
(87.8)
|
|
|
(219.1)
|
|
Other capital
expenditures
|
|
|
(310.4)
|
|
|
(104.5)
|
|
|
(91.2)
|
|
Proceeds from disposal
of property and equipment
|
|
|
1.9
|
|
|
15.3
|
|
|
3.4
|
|
Cash deposits into
Capital Construction Fund
|
|
|
(31.2)
|
|
|
(132.4)
|
|
|
(96.2)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
31.2
|
|
|
132.4
|
|
|
96.2
|
|
Net cash used in
investing activities
|
|
|
(323.4)
|
|
|
(177.0)
|
|
|
(306.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt
|
|
|
—
|
|
|
325.5
|
|
|
—
|
|
Repayments of
debt
|
|
|
(59.3)
|
|
|
(216.5)
|
|
|
(42.1)
|
|
Proceeds from
revolving credit facility
|
|
|
304.3
|
|
|
648.0
|
|
|
622.1
|
|
Repayments of
revolving credit facility
|
|
|
(376.1)
|
|
|
(955.3)
|
|
|
(478.0)
|
|
Payment of financing
costs
|
|
|
(3.0)
|
|
|
(18.5)
|
|
|
—
|
|
Proceeds from issuance
of common stock
|
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
Dividends
paid
|
|
|
(45.9)
|
|
|
(39.2)
|
|
|
(37.2)
|
|
Repurchase of Matson
common stock
|
|
|
(198.3)
|
|
|
—
|
|
|
—
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(14.4)
|
|
|
(5.6)
|
|
|
(3.1)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(392.7)
|
|
|
(261.5)
|
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
|
268.0
|
|
|
(8.7)
|
|
|
3.9
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of the Year
|
|
|
19.7
|
|
|
28.4
|
|
|
24.5
|
|
Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
287.7
|
|
$
|
19.7
|
|
$
|
28.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents, and Restricted Cash, at End of the
Year:
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
282.4
|
|
$
|
14.4
|
|
$
|
21.2
|
|
Restricted
Cash
|
|
|
5.3
|
|
|
5.3
|
|
|
7.2
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Year
|
|
$
|
287.7
|
|
$
|
19.7
|
|
$
|
28.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
19.3
|
|
$
|
26.2
|
|
$
|
22.0
|
|
Income tax paid, net
of income tax refunds
|
|
$
|
241.6
|
|
$
|
(16.1)
|
|
$
|
(24.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
6.4
|
|
$
|
24.7
|
|
$
|
8.5
|
|
MATSON, INC.
AND SUBSIDIARIES
Total Debt to Net
Debt and Net Income to EBITDA Reconciliations
(Unaudited)
|
|
NET DEBT
RECONCILIATION
|
|
|
|
|
|
|
December 31,
|
(In millions)
|
|
2021
|
Total Debt
(1):
|
|
$
|
629.0
|
Less: Cash and
cash equivalents
|
|
|
(282.4)
|
Net Debt
|
|
$
|
346.6
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Net Income
|
|
$
|
394.5
|
|
$
|
85.6
|
|
$
|
308.9
|
|
Add:
Income taxes
|
|
|
78.0
|
|
|
28.8
|
|
|
49.2
|
|
Add:
Interest expense
|
|
|
4.7
|
|
|
4.9
|
|
|
(0.2)
|
|
Add:
Depreciation and amortization
|
|
|
34.2
|
|
|
29.7
|
|
|
4.5
|
|
Add:
Dry-dock amortization
|
|
|
6.3
|
|
|
7.3
|
|
|
(1.0)
|
|
EBITDA (2)
|
|
$
|
517.7
|
|
$
|
156.3
|
|
$
|
361.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
December 31,
|
|
(In millions)
|
|
2021
|
|
2020
|
|
Change
|
|
Net Income
|
|
$
|
927.4
|
|
$
|
193.1
|
|
$
|
734.3
|
|
Add:
Income taxes
|
|
|
243.9
|
|
|
65.9
|
|
|
178.0
|
|
Add:
Interest expense
|
|
|
22.6
|
|
|
27.4
|
|
|
(4.8)
|
|
Add:
Depreciation and amortization
|
|
|
132.1
|
|
|
112.2
|
|
|
19.9
|
|
Add:
Dry-dock amortization
|
|
|
24.3
|
|
|
25.1
|
|
|
(0.8)
|
|
EBITDA (2)
|
|
$
|
1,350.3
|
|
$
|
423.7
|
|
$
|
926.6
|
|
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/matson-inc-announces-fourth-quarter-and-full-year-2021-results-301485064.html
SOURCE Matson, Inc.