- 2Q22 EPS of $9.49
- 2Q22 Net Income and EBITDA of $380.7
million and $536.0 million,
respectively
- Year-over-year increase in 2Q22 consolidated operating income
driven by China service
strength
- Repurchased approximately 1.6 million shares in 2Q22
HONOLULU, Aug. 1, 2022
/PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE:
MATX), a leading U.S. carrier in the Pacific, today reported net
income of $380.7 million, or
$9.49 per diluted share, for the
quarter ended June 30, 2022. Net income for the quarter
ended June 30, 2021 was $162.5 million, or $3.71 per diluted share. Consolidated
revenue for the second quarter 2022 was $1,261.1 million compared with $874.9 million for the second quarter
2021.
![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 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."
Second Quarter 2022 Discussion and Update on Business
Conditions
Ocean Transportation: The Company's container
volume in the Hawaii service in
the second quarter 2022 was 1.5 percent lower
year-over-year. The decrease was primarily due to lower
retail-related demand. During the quarter, we saw continued
improvement in the Hawaii economy
supported by strong domestic tourist arrivals and a modest
improvement in international tourist trends. In the
near-term, we expect continued economic recovery in Hawaii from the pandemic supported by an
improving unemployment rate and increasing tourism traffic, but
there are negative trends from a combination of economic effects
that create uncertainty in the economic growth trajectory.
The negative trends include weakening economic conditions in the
U.S. and global economies and lower household discretionary income
as a result of high inflation, higher interest rates and the end of
the pandemic-era stimulus helping personal income.
In China, the Company's
container volume in the second quarter 2022 increased
11.7 percent year-over-year. The increase was a result
of four more eastbound voyages than the prior year. 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 second quarter
2022 and achieved average freight rates that were considerably
higher than in the year ago period. 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 the October peak season this year.
In Guam, the Company's
container volume in the second quarter 2022 decreased
7.0 percent year-over-year primarily due to lower
retail-related demand. In the near-term, we expect the
Guam economy to continue to
benefit from a recovery in tourism, but there are negative trends
as a result of higher inflation, higher interest rates and the end
of the pandemic-era stimulus helping personal income that creates
uncertainty in the economic growth trajectory.
In Alaska, the Company's
container volume for the second quarter 2022 increased
12.2 percent year-over-year 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"). In the near-term, we expect the Alaska economy to benefit from the resumption
of summer tourism and increased energy-related exploration and
production activity as a result of elevated oil prices, but there
are negative trends as a result of higher inflation, higher
interest rates and the end of the pandemic-era stimulus helping
personal income that creates uncertainty in the economic growth
trajectory.
The contribution in the second quarter 2022 from the Company's
SSAT joint venture investment was $24.7 million, or $11.9 million higher than the second quarter
2021. The increase was primarily driven by higher other
terminal revenue.
Logistics: In the second quarter 2022, operating
income for the Company's Logistics segment was $23.1 million, or $10.2 million higher compared to the level
achieved in the second quarter 2021. The increase was due
primarily to higher contributions from all services as we continued
to see favorable supply and demand fundamentals in our core
markets.
Results By
Segment
|
|
Ocean Transportation
— Three months ended June 30, 2022 compared with
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,049.2
|
|
$
|
682.9
|
|
$
|
366.3
|
|
53.6
|
%
|
Operating costs and
expenses
|
|
|
(579.2)
|
|
|
(481.9)
|
|
|
(97.3)
|
|
20.2
|
%
|
Operating
income
|
|
$
|
470.0
|
|
$
|
201.0
|
|
$
|
269.0
|
|
133.8
|
%
|
Operating income
margin
|
|
|
44.8
|
%
|
|
29.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
39,200
|
|
|
39,800
|
|
|
(600)
|
|
(1.5)
|
%
|
Hawaii
automobiles
|
|
|
10,600
|
|
|
12,700
|
|
|
(2,100)
|
|
(16.5)
|
%
|
Alaska
containers
|
|
|
22,100
|
|
|
19,700
|
|
|
2,400
|
|
12.2
|
%
|
China
containers
|
|
|
48,700
|
|
|
43,600
|
|
|
5,100
|
|
11.7
|
%
|
Guam
containers
|
|
|
5,300
|
|
|
5,700
|
|
|
(400)
|
|
(7.0)
|
%
|
Other containers
(2)
|
|
|
6,200
|
|
|
5,200
|
|
|
1,000
|
|
19.2
|
%
|
___________
|
(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 $366.3 million, or 53.6 percent, during
the three months ended June 30, 2022, compared with the three
months ended June 30, 2021. The increase was primarily
due to higher revenue in China and
higher fuel-related surcharge revenue primarily due to higher
energy prices. The higher revenue in China was primarily due to considerably higher
average freight rates and higher volume.
On a year-over-year FEU basis, Hawaii container volume decreased
1.5 percent primarily due to lower retail-related volume;
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 AAX; China volume was 11.7 percent higher as a
result of four 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 volume in the South Pacific.
Ocean Transportation operating income increased $269.0 million during the three months ended
June 30, 2022, compared with the three months ended
June 30, 2021. The increase was primarily due to
considerably higher average freight rates and higher volume in
China and a higher contribution
from SSAT, partially offset by higher fuel-related expenses, net of
fuel-related surcharge recovery, and higher operating costs and
expenses primarily due to the CLX+ and CCX services.
The Company's SSAT terminal joint venture investment contributed
$24.7 million during the three months
ended June 30, 2022, compared to a contribution of
$12.8 million during the three
months ended June 30, 2021. The increase was primarily
driven by higher other terminal revenue.
Ocean Transportation
— Six months ended June 30, 2022 compared with
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Ocean Transportation
revenue
|
|
$
|
1,993.1
|
|
$
|
1,243.4
|
|
$
|
749.7
|
|
60.3
|
%
|
Operating costs and
expenses
|
|
|
(1,106.9)
|
|
|
(928.3)
|
|
|
(178.6)
|
|
19.2
|
%
|
Operating
income
|
|
$
|
886.2
|
|
$
|
315.1
|
|
$
|
571.1
|
|
181.2
|
%
|
Operating income
margin
|
|
|
44.5
|
%
|
|
25.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Forty-foot
equivalent units (FEU), except for automobiles) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hawaii
containers
|
|
|
74,700
|
|
|
75,500
|
|
|
(800)
|
|
(1.1)
|
%
|
Hawaii
automobiles
|
|
|
19,200
|
|
|
23,400
|
|
|
(4,200)
|
|
(17.9)
|
%
|
Alaska
containers
|
|
|
42,900
|
|
|
37,000
|
|
|
5,900
|
|
15.9
|
%
|
China
containers
|
|
|
95,300
|
|
|
84,700
|
|
|
10,600
|
|
12.5
|
%
|
Guam
containers
|
|
|
10,800
|
|
|
10,700
|
|
|
100
|
|
0.9
|
%
|
Other containers
(2)
|
|
|
11,500
|
|
|
9,200
|
|
|
2,300
|
|
25.0
|
%
|
_____________
|
(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 $749.7 million, or 60.3 percent, during
the six months ended June 30, 2022, compared with the six
months ended June 30, 2021. The increase was primarily
due to higher revenue in China,
higher fuel-related surcharge revenue primarily due to higher
energy prices, 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 Alaska was primarily the result of higher
volume.
On a year-over-year FEU basis, Hawaii container volume decreased
1.1 percent primarily due to lower retail-related demand;
Alaska volume increased
15.9 percent primarily due to (i) higher northbound volume
primarily due to higher retail-related demand and volume related to
a competitor's dry-docking, (ii) higher volume from AAX and (iii)
higher southbound volume primarily due to higher seafood volume;
China volume was 12.5 percent
higher as a result of nine more eastbound voyages than the prior
year; Guam volume was
0.9 percent higher primarily due to higher retail-related
demand; and Other containers volume increased 25.0 percent
primarily due to the addition of China-Auckland Express volume in
the South Pacific.
Ocean Transportation operating income increased $571.1 million during the six months ended
June 30, 2022, compared with the six months ended
June 30, 2021. The increase was primarily due to
considerably higher average freight rates and higher volume in
China and a higher contribution
from SSAT, partially offset by higher fuel-related expenses, net of
fuel-related surcharge recovery, and higher operating costs and
expenses primarily due to the CLX+ and CCX services.
The Company's SSAT terminal joint venture investment contributed
$58.7 million during the six
months ended June 30, 2022, compared to a contribution of
$22.0 million during the six
months ended June 30, 2021. The increase was primarily
driven by higher other terminal revenue.
Logistics — Three
months ended June 30, 2022 compared with 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Logistics
revenue
|
|
$
|
211.9
|
|
$
|
192.0
|
|
$
|
19.9
|
|
10.4
|
%
|
Operating costs and
expenses
|
|
|
(188.8)
|
|
|
(179.1)
|
|
|
(9.7)
|
|
5.4
|
%
|
Operating
income
|
|
$
|
23.1
|
|
$
|
12.9
|
|
$
|
10.2
|
|
79.1
|
%
|
Operating income
margin
|
|
|
10.9
|
%
|
|
6.7
|
%
|
|
|
|
|
|
Logistics revenue increased $19.9 million, or 10.4 percent, during
the three months ended June 30, 2022, compared with the three
months ended June 30, 2021. The increase was primarily
due to higher supply chain management and transportation brokerage
revenue.
Logistics operating income increased $10.2 million, or 79.1 percent, during
the three months ended June 30, 2022, compared with the three
months ended June 30, 2021. The increase was primarily
due to higher contributions from all services.
Logistics — Six
months ended June 30, 2022 compared with 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Dollars in millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Logistics
revenue
|
|
$
|
433.5
|
|
$
|
343.3
|
|
$
|
90.2
|
|
26.3
|
%
|
Operating costs and
expenses
|
|
|
(394.0)
|
|
|
(324.3)
|
|
|
(69.7)
|
|
21.5
|
%
|
Operating
income
|
|
$
|
39.5
|
|
$
|
19.0
|
|
$
|
20.5
|
|
107.9
|
%
|
Operating income
margin
|
|
|
9.1
|
%
|
|
5.5
|
%
|
|
|
|
|
|
Logistics revenue increased $90.2 million, or 26.3 percent, during
the six months ended June 30, 2022, compared with the six
months ended June 30, 2021. The increase was primarily
due to higher transportation brokerage revenue.
Logistics operating income increased $20.5 million, or 107.9 percent, during
the six months ended June 30, 2022, compared with the six
months ended June 30, 2021. The increase was primarily
due to higher contributions from all services.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents increased by $326.6 million from $282.4 million at December 31, 2021 to $609.0 million at
June 30, 2022. Matson generated net cash from operating
activities of $691.1 million
during the six months ended June 30, 2022, compared to
$238.8 million during the six
months ended June 30, 2021. Capital expenditures totaled
$68.4 million for the six months
ended June 30, 2022, compared with $101.3 million for the six months ended
June 30, 2021. Total debt decreased by $32.4 million during the six months to
$596.6 million as of
June 30, 2022, of which $531.6 million was classified as long-term
debt. As of June 30, 2022 Matson had available
borrowings under its revolving credit facility of $642.0 million.
During the second quarter 2022, Matson repurchased approximately
1.6 million shares for a total cost of $138.1 million. As of the end of the
second quarter 2022, there were approximately 1.2 million
shares remaining in the share repurchase program.
As previously announced, Matson's Board of Directors declared a
cash dividend of $0.31 per share
payable on September 1, 2022 to all shareholders of record as
of the close of business on August 4, 2022.
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.
Participants may register for the conference call at:
https://register.vevent.com/register/BI50173006aa0245ddae17cd86ba37457f
Registered participants 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.
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, cash flow expectations and uses of cash and cash flow,
supply chain challenges in China,
terminal and port congestion on the U.S. West Coast, container
dwell times, demand for consumer and retail-related goods,
Transpacific freight rates and Matson's rate premium, volume levels
and demand for Matson's China
service, duration of CCX service, tourism levels, unemployment
rates, energy-related exploration and production activity, economic
recovery and drivers in Hawaii,
Alaska and Guam, economic conditions in the U.S. and
global economies, inflation, interest rates, personal and
discretionary income, rail congestion, warehouse unit activity,
refleeting initiatives and EBITDA contribution, capital
expenditures, the costs and timing of liquified natural gas
installations on certain vessels, labor contract renewals, timing
and amount of contribution to Capital Construction Fund ("CCF"),
federal and state cash tax savings, and share repurchase
activity. 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.
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)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean
Transportation
|
|
$
|
1,049.2
|
|
$
|
682.9
|
|
$
|
1,993.1
|
|
$
|
1,243.4
|
Logistics
|
|
|
211.9
|
|
|
192.0
|
|
|
433.5
|
|
|
343.3
|
Total Operating
Revenue
|
|
|
1,261.1
|
|
|
874.9
|
|
|
2,426.6
|
|
|
1,586.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
(728.4)
|
|
|
(615.6)
|
|
|
(1,432.1)
|
|
|
(1,160.3)
|
Income from
SSAT
|
|
|
24.7
|
|
|
12.8
|
|
|
58.7
|
|
|
22.0
|
Selling, general and
administrative
|
|
|
(64.3)
|
|
|
(58.2)
|
|
|
(127.5)
|
|
|
(114.3)
|
Total Costs and
Expenses
|
|
|
(768.0)
|
|
|
(661.0)
|
|
|
(1,500.9)
|
|
|
(1,252.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
493.1
|
|
|
213.9
|
|
|
925.7
|
|
|
334.1
|
Interest
expense
|
|
|
(4.5)
|
|
|
(5.5)
|
|
|
(9.3)
|
|
|
(12.8)
|
Other income
(expense), net
|
|
|
1.8
|
|
|
1.5
|
|
|
3.8
|
|
|
2.9
|
Income before
Taxes
|
|
|
490.4
|
|
|
209.9
|
|
|
920.2
|
|
|
324.2
|
Income
taxes
|
|
|
(109.7)
|
|
|
(47.4)
|
|
|
(200.3)
|
|
|
(74.5)
|
Net Income
|
|
$
|
380.7
|
|
$
|
162.5
|
|
$
|
719.9
|
|
$
|
249.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
|
9.54
|
|
$
|
3.74
|
|
$
|
17.82
|
|
$
|
5.75
|
Diluted Earnings Per
Share
|
|
$
|
9.49
|
|
$
|
3.71
|
|
$
|
17.69
|
|
$
|
5.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39.9
|
|
|
43.5
|
|
|
40.4
|
|
|
43.4
|
Diluted
|
|
|
40.1
|
|
|
43.8
|
|
|
40.7
|
|
|
43.8
|
MATSON, INC.
AND SUBSIDIARIES Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
(In millions)
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
609.0
|
|
$
|
282.4
|
Other current
assets
|
|
|
503.7
|
|
|
422.1
|
Total current
assets
|
|
|
1,112.7
|
|
|
704.5
|
Long-term
Assets:
|
|
|
|
|
|
|
Investment in
SSAT
|
|
|
93.1
|
|
|
58.7
|
Property and
equipment, net
|
|
|
1,894.7
|
|
|
1,878.3
|
Goodwill
|
|
|
327.8
|
|
|
327.8
|
Intangible assets,
net
|
|
|
175.8
|
|
|
181.1
|
Other long-term
assets
|
|
|
554.5
|
|
|
542.7
|
Total long-term
assets
|
|
|
3,045.9
|
|
|
2,988.6
|
Total
assets
|
|
$
|
4,158.6
|
|
$
|
3,693.1
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
65.0
|
|
$
|
65.0
|
Other current
liabilities
|
|
|
567.1
|
|
|
547.4
|
Total current
liabilities
|
|
|
632.1
|
|
|
612.4
|
Long-term
Liabilities:
|
|
|
|
|
|
|
Long-term debt, net of
deferred loan fees
|
|
|
517.9
|
|
|
549.7
|
Deferred income
taxes
|
|
|
433.8
|
|
|
425.2
|
Other long-term
liabilities
|
|
|
441.2
|
|
|
438.4
|
Total long-term
liabilities
|
|
|
1,392.9
|
|
|
1,413.3
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
2,133.6
|
|
|
1,667.4
|
Total liabilities and
shareholders' equity
|
|
$
|
4,158.6
|
|
$
|
3,693.1
|
MATSON, INC.
AND SUBSIDIARIES Condensed Consolidated Statements of
Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(In millions)
|
|
2022
|
|
2021
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
719.9
|
|
$
|
249.7
|
|
Reconciling
adjustments:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
71.1
|
|
|
67.9
|
|
Amortization of
operating lease right of use assets
|
|
|
75.3
|
|
|
49.2
|
|
Deferred income
taxes
|
|
|
9.4
|
|
|
15.2
|
|
Share-based
compensation expense
|
|
|
10.5
|
|
|
9.5
|
|
Income from
SSAT
|
|
|
(58.7)
|
|
|
(22.0)
|
|
Distribution from
SSAT
|
|
|
26.3
|
|
|
21.0
|
|
Other
|
|
|
(0.7)
|
|
|
(1.0)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(37.6)
|
|
|
(60.2)
|
|
Deferred dry-docking
payments
|
|
|
(14.7)
|
|
|
(17.4)
|
|
Deferred dry-docking
amortization
|
|
|
12.9
|
|
|
12.6
|
|
Prepaid expenses and
other assets
|
|
|
(48.3)
|
|
|
(38.7)
|
|
Accounts payable,
accruals and other liabilities
|
|
|
4.5
|
|
|
3.7
|
|
Operating lease
liabilities
|
|
|
(74.2)
|
|
|
(47.1)
|
|
Other long-term
liabilities
|
|
|
(4.6)
|
|
|
(3.6)
|
|
Net cash provided by
operating activities
|
|
|
691.1
|
|
|
238.8
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
Capitalized vessel
construction expenditures
|
|
|
(11.4)
|
|
|
—
|
|
Other capital
expenditures
|
|
|
(68.4)
|
|
|
(101.3)
|
|
Proceeds from disposal
of property and equipment
|
|
|
0.8
|
|
|
1.7
|
|
Cash deposits into
Capital Construction Fund
|
|
|
(10.7)
|
|
|
(31.2)
|
|
Withdrawals from
Capital Construction Fund
|
|
|
10.7
|
|
|
31.2
|
|
Net cash used in
investing activities
|
|
|
(79.0)
|
|
|
(99.6)
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of
debt
|
|
|
(32.5)
|
|
|
(26.8)
|
|
Proceeds from
revolving credit facility
|
|
|
—
|
|
|
241.9
|
|
Repayments of
revolving credit facility
|
|
|
—
|
|
|
(313.7)
|
|
Payment of financing
costs
|
|
|
—
|
|
|
(3.0)
|
|
Dividends
paid
|
|
|
(25.0)
|
|
|
(20.2)
|
|
Repurchase of Matson
common stock
|
|
|
(208.5)
|
|
|
—
|
|
Tax withholding
related to net share settlements of restricted stock
units
|
|
|
(19.5)
|
|
|
(14.4)
|
|
Net cash used in
financing activities
|
|
|
(285.5)
|
|
|
(136.2)
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash,
Cash Equivalents and Restricted Cash
|
|
|
326.6
|
|
|
3.0
|
|
Cash, Cash Equivalents
and Restricted Cash, Beginning of the Period
|
|
|
287.7
|
|
|
19.7
|
|
Cash, Cash Equivalents
and Restricted Cash, End of the Period
|
|
$
|
614.3
|
|
$
|
22.7
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash,
Cash Equivalents and Restricted Cash, End of the Period:
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
609.0
|
|
$
|
17.4
|
|
Restricted
Cash
|
|
|
5.3
|
|
|
5.3
|
|
Total Cash, Cash
Equivalents and Restricted Cash, End of the Period
|
|
$
|
614.3
|
|
$
|
22.7
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
$
|
8.4
|
|
$
|
10.4
|
|
Income tax payments,
net of refunds
|
|
$
|
211.7
|
|
$
|
75.2
|
|
|
|
|
|
|
|
|
|
Non-cash
Information:
|
|
|
|
|
|
|
|
Capital expenditures
included in accounts payable, accruals and other
liabilities
|
|
$
|
6.1
|
|
$
|
7.7
|
|
Accrued
dividends
|
|
$
|
12.4
|
|
$
|
13.2
|
|
MATSON, INC.
AND SUBSIDIARIES Net Income to EBITDA
Reconciliations (Unaudited)
|
EBITDA
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
June 30,
|
|
Last Twelve
|
|
(In millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Months
|
|
Net Income
|
|
$
|
380.7
|
|
$
|
162.5
|
|
$
|
218.2
|
|
$
|
1,397.6
|
|
Add:
Income taxes
|
|
|
109.7
|
|
|
47.4
|
|
|
62.3
|
|
|
369.7
|
|
Add:
Interest expense
|
|
|
4.5
|
|
|
5.5
|
|
|
(1.0)
|
|
|
19.1
|
|
Add:
Depreciation and amortization
|
|
|
34.9
|
|
|
32.9
|
|
|
2.0
|
|
|
136.9
|
|
Add:
Dry-dock amortization
|
|
|
6.2
|
|
|
6.0
|
|
|
0.2
|
|
|
24.6
|
|
EBITDA (1)
|
|
$
|
536.0
|
|
$
|
254.3
|
|
$
|
281.7
|
|
$
|
1,947.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
(In millions)
|
|
2022
|
|
2021
|
|
Change
|
|
Net Income
|
|
$
|
719.9
|
|
$
|
249.7
|
|
$
|
470.2
|
|
Add:
Income taxes
|
|
|
200.3
|
|
|
74.5
|
|
|
125.8
|
|
Add:
Interest expense
|
|
|
9.3
|
|
|
12.8
|
|
|
(3.5)
|
|
Add:
Depreciation and amortization
|
|
|
70.0
|
|
|
65.2
|
|
|
4.8
|
|
Add:
Dry-dock amortization
|
|
|
12.9
|
|
|
12.6
|
|
|
0.3
|
|
EBITDA (1)
|
|
$
|
1,012.4
|
|
$
|
414.8
|
|
$
|
597.6
|
|
________________
|
(1)
|
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.
|
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SOURCE Matson, Inc.