- Expects 3Q22 operating income for Ocean Transportation to be
$310.0 to $315.0 million
- Expects 3Q22 operating income for Logistics to be $19.0 to $20.0
million
- Expects 3Q22 net income and diluted EPS to be $257.3 to $262.0
million and $6.67 to
$6.79, respectively
- Year-over-year decrease in consolidated operating income driven
primarily by lower volume in China
service
- Repurchased approximately 1.1 million shares in 3Q22
- Announces third quarter earnings call date on November 2, 2022
HONOLULU, Oct. 17,
2022 /PRNewswire/ -- Matson, Inc. ("Matson" or the
"Company") (NYSE: MATX) today announces preliminary third quarter
financial results, provides a business update and announces that
its third quarter earnings call will be held on November 2, 2022.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson's differentiated ocean services performed well in the
third quarter 2022, but the Company achieved lower year-over-year
consolidated operating income as we saw lower demand for expedited
ocean services in the Transpacific tradelane compared to the high
levels of freight demand during the pandemic in the year ago
period," said Chairman and Chief Executive Officer Matt Cox. "Within Ocean Transportation,
our CLX, CLX+ and CCX services achieved lower year-over-year
volumes which contributed to the decline in our consolidated
operating income. As we mentioned on our second quarter
earnings call, we believed rates had likely peaked in the
Transpacific tradelane for this cycle and would be in a
transitional decline from the pandemic highs. Additionally,
due to less demand for expedited ocean services and easing port
congestion in Southern California,
we decided to end our temporary CCX service in early September,
about six weeks earlier than expected. For the remainder of
the year, we expect to experience lower year-over-year freight
demand and a lower rate environment for our CLX and CLX+ services,
but we expect to continue to earn a significant rate premium to the
Shanghai Containerized Freight Index due to our differentiated,
reliable and fast ocean services."
Mr. Cox added, "In our domestic ocean tradelanes, we saw
continued strength in Alaska with
higher year-over-year volume and lower volumes in Hawaii and Guam compared to the year ago period.
The year-over-year decline in Hawaii volume was impacted by the pandemic
spike in demand experienced in the year ago period, and volumes for
the quarter were higher than the pre-pandemic third quarter of
2019. 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 third quarter operating
income for Ocean Transportation of $310.0 to $315.0
million and Logistics operating income of $19.0 to $20.0
million. We also expect third quarter 2022 net income
and diluted EPS to be $257.3 to
$262.0 million and $6.67 to $6.79,
respectively."
Third Quarter Tradelane Volume
(Forty-foot equivalent units (FEU)) (1)(2):
For the three months ended September 30, 2022 compared to
the three months ended September 30, 2021 and on a FEU
basis:
- Hawaii container volume
decreased 7.1 percent primarily due to lower retail-related
demand;
- Alaska volume increased 10.6
percent primarily due to (i) higher export seafood volume from
Alaska-Asia Express ("AAX"), (ii) higher northbound volume
primarily due to higher retail-related demand and volume related to
a competitor's dry-docking and (iii) higher southbound volume
primarily due to higher domestic seafood volume;
- China volume was 15.1 percent
lower primarily due to (i) lower demand for the CLX, CLX+ and CCX
services and (ii) one less sailing;
- Guam volume was 1.8 percent
lower primarily due to lower retail-related demand; and
- Other containers volume increased 11.1 percent.
(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)
|
Other containers
includes containers from services in various islands in Micronesia
and the South Pacific, and Okinawa, Japan.
|
Liquidity, Debt and Share
Repurchases
During the third quarter of 2022, Matson contributed
$565.0 million in cash to the Capital
Construction Fund. Matson's cash and cash equivalents as of
September 30, 2022 was approximately
$240.0 million, which excludes the
aforementioned cash deposited into the Capital Construction
Fund. Total debt (presented before any reduction for deferred
loan fees as required by GAAP) as of September 30, 2022 was $531.8 million. During the third quarter of
2022, Matson prepaid approximately $50.4
million of outstanding principal on the 4.16% Prudential
Series C-2 notes due 2027 and the 4.31% Prudential Series C-3 notes
due 2032, which represented all of the remaining principal amount
outstanding for both notes.
During the third quarter of 2022, Matson repurchased
approximately 1.1 million shares for a total cost of $88.4 million. As of September 30, 2022, the Company had approximately
3.0 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 November 2, 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 third quarter results.
Date of Conference
Call:
|
Wednesday, November 2,
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/BId470887075974c638c7f980ef087a60f
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
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 CLX and CLX+
services, transition in the Transpacific tradelane, the rate
environment and Matson's rate premium to the Shanghai Containerized
Freight Index, and new vessel program. 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/matson-announces-preliminary-3q22-results-provides-business-update-and-announces-3q22-earnings-call-date-301651273.html
SOURCE Matson, Inc.