- Expects 2Q22 operating income for Ocean Transportation to be
$465.0 to $470.0 million
- Expects 2Q22 operating income for Logistics to be $22.5 to $23.5
million
- Expects 2Q22 net income and diluted EPS to be $373.3 to $377.9
million and $9.31 to
$9.42, respectively
- Year-over-year increase in consolidated operating income driven
by China service strength
- Repurchased approximately 1.6 million shares in 2Q22
- Announces second quarter earnings call date on August 1, 2022
HONOLULU, July 19,
2022 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX) today announces preliminary second quarter
financial results, provides a business update and announces that
its second quarter earnings call will be held on August 1, 2022.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson performed well in the second quarter 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
by continued strength in the China
service. Currently in the Transpacific tradelane, we are
seeing solid demand for our China
service as China's factory
production continues to recover from the COVID-19-related supply
chain challenges. However, in recent weeks we have seen a
gradual decline in the Transpacific freight rate environment off
the highs experienced earlier this year. This indicates that
rates have likely peaked for now, and, at this time, we expect an
orderly marketplace for the remainder of the year with our vessels
continuing to operate at or near capacity and earning a significant
rate premium to the market because of our differentiated, fast
ocean services. To this end, we continue to expect to operate
the CCX service through at least the October peak season this
year."
Mr. Cox added, "In our domestic ocean tradelanes, we saw
continued strength in Alaska with
higher year-over-year volume and softer volumes in Hawaii and Guam compared to the year ago period. In
Logistics, operating income increased year-over-year with strength
across all of the business lines as we continued to see favorable
supply and demand fundamentals in our core markets. As a
result, Matson expects second quarter operating income for Ocean
Transportation of $465.0 to
$470.0 million and Logistics
operating income of $22.5 to
$23.5 million. We also expect
second quarter 2022 net income and diluted EPS to be $373.3 to $377.9
million and $9.31 to
$9.42, respectively."
Second Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended June 30,
2022 compared to the three months ended June 30, 2021 and on a FEU basis:
- Hawaii container volume
decreased 1.5 percent primarily due to lower retail-related
demand;
- Alaska volume increased 12.2
percent primarily due to (i) higher northbound volume primarily due
to higher retail-related demand and an additional sailing and (ii)
higher volume from Alaska-Asia Express ("AAX");
- China volume was 11.7 percent
higher as a result of 4 more eastbound voyages than the prior
year;
- Guam volume was 7.0 percent
lower primarily due to lower retail-related demand; and
- Other containers volume increased 19.2 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 as of June 30, 2022 was approximately $609.0 million. Total debt (presented
before any reduction for deferred loan fees as required by GAAP) as
of June 30, 2022 was $596.6 million.
During the second quarter of 2022, Matson repurchased
approximately 1.6 million shares for a total cost of $138.1 million. As of June 30, 2022, the Company had approximately 1.2
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 August
1, 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 second quarter results.
|
|
Date of Conference
Call:
|
Monday, August 1,
2022
|
Scheduled
Time:
|
4:30 p.m. ET / 1:30
p.m. PT / 10:30 a.m. HT
|
The conference call will be broadcast live along with an
additional slide presentation on the Company's website at
www.matson.com, under Investors.
Particpants may register for the conference call at:
https://register.vevent.com/register/BI50173006aa0245ddae17cd86ba37457f
Registered partipants will receive the conference call dial-in
number and a unique PIN code to access the live event. While
not required, it is recommended you join 10 minutes prior to the
event starting time. A replay of the conference call will be
available approximately two hours after the event by accessing the
webcast link 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, volume level and demand for Matson's China service, Transpacific freight rates and
Matson's rate premium, duration of CCX service, tourism
levels, unemployment rates, economic recovery and drivers in
Hawaii, Alaska and Guam, economic conditions in the U.S. and
global economies, inflation, and personal 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.