- Expects 1Q22 operating income for Ocean Transportation to be
$410.0 to $415.0 million
- Expects 1Q22 operating income for Logistics to be $16.0 to $17.0
million
- Expects 1Q22 net income and diluted EPS to be $329.5 to $338.0
million and $8.00 to
$8.20, respectively
- Year-over-year increase in consolidated operating income driven
primarily by China service
strength
- Repurchased approximately 0.7 million shares in 1Q22
- Announces first quarter earnings call date on May 3, 2022
HONOLULU, April 19, 2022 /PRNewswire/ -- Matson, Inc.
("Matson" or the "Company") (NYSE: MATX) today announces
preliminary first quarter financial results, provides a business
update and announces that its first quarter earnings call will be
held on May 3, 2022.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson is off to a solid start in 2022 with higher
year-over-year operating income 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. The
increase in consolidated operating income year-over-year was driven
primarily by continued strength in the China service. Currently in the
Transpacific tradelane, we are seeing supply chain challenges in
China, primarily due to actions to
mitigate the spread of COVID-19, as well as continued supply chain
constraints and congestion on the U.S. West Coast, elevated
consumption trends, and inventory restocking. Despite the
near-term uncertainty presented by the supply chain challenges in
China, we expect a combination of
the current supply and demand factors to remain largely in place
through at least the October peak season and continue to expect
elevated demand for our China
service for most of this year."
Mr. Cox added, "In our domestic ocean tradelanes, we continued
to see steady demand with higher year-over-year volumes in
Alaska and Guam, and demand in Hawaii comparable to the level achieved in the
year ago period. In Logistics, operating income increased
year-over-year with strength across all of the business lines as as
we continued to see elevated goods consumption, inventory
restocking and favorable supply and demand fundamentals in our core
markets. As a result, Matson expects first quarter operating
income for Ocean Transportation of $410.0 to $415.0
million and Logistics operating income of $16.0 to $17.0
million. We also expect first quarter 2022 net income
and diluted EPS to be $329.5 to
$338.0 million and $8.00 to $8.20,
respectively."
First Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended March 31,
2022 compared to the three months ended March 31, 2021 and on a FEU basis:
- Hawaii container volume
decreased 0.6 percent primarily due to lower eastbound volume;
- Alaska volume increased 20.2
percent primarily due to the increase in volume from Alaska-Asia
Express ("AAX"), higher northbound volume primarily due to higher
retail-related demand and volume related to a competitor's
dry-docking, and higher southbound volume primarily due to higher
seafood volume;
- China volume was 13.4 percent
higher as a result of 5 more eastbound voyages than the prior
year;
- Guam volume was 10.0 percent
higher primarily due to higher retail-related demand; and
- Other containers volume increased 32.5 percent primarily due to
the addition of China-Auckland Express ("CAX") volume in the South
Pacific.
- 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.
- Other containers includes containers from services in various
islands in Micronesia and the
South Pacific, and Okinawa,
Japan.
Liquidity, Debt and Share Repurchases
Matson's cash and cash equivalents and total debt (presented
before any reduction for deferred loan fees as required by GAAP) as
of March 31, 2022 were approximately
$390.0 million and $614.7 million, respectively.
During the first quarter of 2022, Matson repurchased
approximately 0.7 million shares for a total cost of $68.6 million. As of March 31, 2022, the Company had approximately 2.8
million shares remaining in its share repurchase program.
A slide presentation that accompanies this press release is
available on the Company's website at www.matson.com, under
Investors.
Teleconference and Webcast
A conference call is scheduled on May 3,
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 first quarter results.
|
|
Date of Conference
Call:
|
Tuesday, May 3,
2022
|
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 May 10, 2022 by dialing
1-855-859-2056 or 1-404-537-3406 and using the conference number
3729448. 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
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, supply chain challenges in China, actions to mitigate the spread of
COVID-19, supply chain constraints and congestion on the U.S. West
Coast, consumption trends, inventory restocking, duration of
current supply and demand factors, demand for Matson's China service, demand for e-commerce, garments
and other goods, duration of CCX service, tourism levels,
unemployment rates, waves of COVID-19 variants, economic recovery
and drivers in Hawaii,
Alaska and Guam, inflation, interest rates, and
discretionary income. 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; changes in economic conditions or governmental policies,
including from the COVID-19 pandemic; our ability to offer a
differentiated service in China
for which customers are willing to pay a significant premium; new
or increased competition or improvements in competitors' service
levels; our relationship with customers, agents, vendors and
partners and changes in related agreements; fuel prices, our
ability to collect fuel related surcharges and/or the cost or
limited availability of required fuels; evolving stakeholder
expectations related to environmental, social and governance
matters; timely or successful completion of fleet upgrade
initiatives; the occurrence of poor weather, natural disasters,
maritime accidents, spill events and other physical and operating
risks, including those arising from climate change; transitional
and other risks arising from climate change; the magnitude and
timing of the impact of public health crises, including COVID-19;
significant operating agreements and leases that may not be
replaced on favorable terms; any unanticipated dry-dock or repair
expenses; joint venture relationships; conducting business in a
foreign shipping market, including the imposition of tariffs or a
change in international trade policies; any delays or cost overruns
related to the modernization of terminals; war, terrorist attacks
or other acts of violence; consummating and integrating
acquisitions; freight levels and increasing costs and availability
of truck capacity or alternative means of transporting freight;
relations with our unions; satisfactory negotiation and renewal of
expired collective bargaining agreements without significant
disruption to Matson's operations; loss of key personnel or failure
to adequately manage human capital; the use of our information
technology and communication systems and cybersecurity attacks;
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; costs to comply with and liability
related to numerous safety, environmental, and other laws and
regulations; and disputes, legal and other proceedings and
government inquiries or investigations. 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,
2021 and our other filings with the SEC through the date of
this release, which identify important factors that could affect
the forward-looking statements in this release. We do not
undertake any obligation to update our forward-looking
statements.
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SOURCE Matson, Inc.