- Expects 4Q22 operating income for Ocean Transportation to be
$70.0 to $80.0
million
- Expects 4Q22 operating income for Logistics to be $12.0 to $13.0
million
- Expects 4Q22 net income and diluted EPS to be $69.9 to $74.8
million and $1.88 to
$2.01, respectively
- Year-over-year decrease in consolidated operating income driven
primarily by lower contribution from China service
- Repurchased approximately 1.5 million shares in 4Q22
- Announces fourth quarter earnings call date on February 21, 2023
HONOLULU, Jan. 18,
2023 /PRNewswire/ -- Matson, Inc. ("Matson" or
the "Company") (NYSE: MATX) today announces preliminary fourth
quarter financial results, provides a business update and announces
that its fourth quarter earnings call will be held on February 21, 2023.
![Matson Logo. (PRNewsFoto/Matson) Matson Logo. (PRNewsFoto/Matson)](https://mma.prnewswire.com/media/128194/matson_logo.jpg)
"Matson's Ocean Transportation and Logistics business segments
performed well in a difficult business environment," said Chairman
and Chief Executive Officer Matt
Cox. "Within Ocean Transportation, our China service achieved lower year-over-year
volume and freight rates which contributed to the decline in our
consolidated operating income. As we mentioned on our
November earnings call, we expected the fourth quarter of 2022 and
first quarter of 2023 to be challenging in the Transpacific
tradelane as retailers' inventories adjust to consumer demand
levels and as ocean liners reduce vessel capacity to meet lower
demand levels. Currently in the Transpacific marketplace,
business conditions remain challenging as retailers continue to
right-size inventories amidst weakening consumer demand, increasing
interest rates and economic uncertainty. As such, we expect
our CLX and CLX+ services in the first quarter and first half of
the year to reflect freight demand levels below normalized
conditions with lower year-over-year volumes and a lower rate
environment. Absent an economic 'hard landing' in the U.S.,
we expect improved trade dynamics in the second half of 2023 as the
Transpacific marketplace transitions to a more normalized level of
demand. Regardless of the economic environment, we operate
the two fastest and most reliable ocean services and, as a result,
we expect to continue to earn a significant rate premium to the
Shanghai Containerized Freight
Index."
Mr. Cox added, "In our domestic ocean tradelanes, we saw lower
year-over-year volumes in Hawaii,
Alaska and Guam compared to the year ago period.
The year-over-year decline in Hawaii volume was primarily due to lower
retail- and hospitality-related demand compared to elevated
pandemic levels in the year ago period. In Logistics,
operating income decreased year-over-year primarily due to a lower
contribution from supply chain management consistent with lower
demand in the Transpacific tradelane. As a result, Matson
expects fourth quarter operating income for Ocean Transportation of
$70.0 to $80.0
million and Logistics operating income of $12.0 to $13.0
million. We also expect fourth quarter 2022 net income
and diluted EPS to be $69.9 to
$74.8 million and $1.88 to $2.01,
respectively."
Fourth Quarter Tradelane Volume (Forty-foot equivalent units
(FEU)) (1)(2):
For the three months ended December 31,
2022 compared to the three months ended December 31,
2021 and on a FEU basis:
- Hawaii container volume
decreased 13.0 percent primarily due to lower retail- and
hospitality-related demand and one less week;
- Alaska volume decreased 7.7
percent primarily due to (i) lower northbound volume primarily due
to one less sailing and one less week and (ii) lower southbound
volume primarily due to lower domestic seafood volume and one less
week, partially offset by higher export seafood volume from
Alaska-Asia Express ("AAX");
- China volume was 47.2 percent
lower primarily due to (i) lower demand for the CLX and CLX+
services, (ii) the discontinuation of the CCX service in 3Q22 and
(iii) one less week;
- Guam volume was 14.0 percent
lower primarily due to lower retail-related demand; and
- Other containers volume decreased 10.7 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
Matson's cash and cash equivalents as of December 31, 2022 was approximately $250.0 million, which excludes $518.2 million in cash on deposit within the
Capital Construction Fund. Total debt (presented before any
reduction for deferred loan fees as required by GAAP) as of
December 31, 2022 was $517.5 million.
During the fourth quarter of 2022, Matson repurchased
approximately 1.5 million shares for a total cost of $101.9 million. As of December 31, 2022, the Company had approximately
1.5 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 February 21, 2023 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
|
Tuesday, February 21,
2023
|
Scheduled
Time
|
4:30 pm ET/1:30 pm
PT/11:30 am 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/BIfcad646d67d34b738acd1592c030b6bc
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 and freight levels, retailers' inventories,
consumer demand levels, vessel capacity, interest rates, economic
uncertainty, trade dynamics, business conditions in the
Transpacific marketplace, the rate environment, and Matson's rate
premium to the Shanghai Containerized Freight Index. 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 macroeconomic conditions, geopolitical developments, 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 foreign shipping markets, 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; 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 Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022 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.